The Town of Grand Lake is a Statutory Town located in Grand County, Colorado, United States. The population was 447 at the 2000 census. Established in 1881, Grand Lake sits at an elevation of 8369 feet (2551 m). It derives its name from the lake on whose shores it is situated: Grand Lake, the most extensive natural body of water in Colorado. The Town of Grand Lake was originally an outfitting and supply point for the mining settlements of Lulu City, Teller City, and Gaskill, but today is a tourist destination adjacent to the western entrance to Rocky Mountain National Park which also surrounds the lake and the town on three sides. Grand Lake was the Grand County seat of government from 1882-1888. It was incorporated on June 23, 1944.
Grand Lake is Colorado's largest and deepest natural lake, and is part of the headwaters of the Colorado River. The Lake became a component in the Colorado-Big Thompson Project (C-BT) in 1937, when it was recruited as a conduit for C-BT project water. The C-BT project diverts water from the Colorado River Basin east via the Alva B. Adams Tunnel under the Continental Divide and Rocky Mountain National Park to the Platte River and ultimately the Mississippi River basin.
Grand Lake Yacht Club serves the people of Grand Lake as a private club hosting sailing races on the Lake, and there are also publicly and privately operated marinas, a public boat ramp, and public boat docks on the lake.
Grand Lake is home to the Rocky Mountain Repertory Theatre. This summer stock theatre company produces three Broadway musicals from June through August and one musical in September. In the Spring of 2010, a new 12,000-square-foot (1,100 sq m) theatre complex was built for RMRT in Grand Lake.