Lugu Lake is located at the junction of Yanyuan County (Liangshan Prefecture, Sichuan) and Ninglang County (Lijiang, Yunnan), jointly administered by both Sichuan and Yunnan provinces. To the east of the lake lies Lugu Lake Town in Yanyuan, while to the west is Yongning Township in Ninglang. The lake stretches roughly from northwest to southeast, covering an area of 50.1 square kilometers with a water storage capacity of 2.252 billion cubic meters.
Geologically, Lugu Lake is a plateau fault lake formed by dissolution and subsidence. It belongs to the Litang River system—a tributary of the Yalong River, which feeds into the Jinsha River (the upper mainstream of the Yangtze). It also serves as the source of the Xiao Jin River.
Situated in the Yongning Basin, the lake basin is the third deepest lake in China, featuring a small island within its waters. The surrounding areas are primarily inhabited by the Mosuo, Yi, and Pumi people, with about 13,000 residents from seven ethnic groups, including Mongolians, living along the shores. Its beautiful natural environment and unique ethnic customs have made it a famous tourist destination, hosting the Lijiang Lugu Lake Mosuo Cultural Tourism Area and the Liangshan Prefecture Lugu Lake Scenic Area.
In August 2023, the scenic area made concerted efforts to strive for status as a National 5A-level Tourist Attraction. By December 2023, the Sichuan Yanyuan Lugu Lake area was included in the list of important habitats for terrestrial wildlife as a key habitat for black-necked cranes.