Caballo Lake a rest stop during their travels, and eagles are often seen in the area. Caballo Lake is named for the Caballo Mountains that border the lake to the northeast, east, and southeast, in which wild horses roamed; Caballo means "horse" in Spanish. The upper area of the lake is very shallow and in recent years has been blocked from the lower, deeper end of the lake. The water has a slightly brownish hue from a distance, due to the shallow waters (usually about at the deepest point). The beaches of Caballo are rocky when compared to Elephant Butte Reservoir, but
Caballo Lake Caballo Lake Caballo Lake is a reservoir on the Rio Grande in southern New Mexico, United States. It is the fourth largest reservoir in New Mexico in terms of surface area and the fifth largest body of water in New Mexico in terms of volume. The lake is in Caballo Lake State Park, which is approximately south of Truth or Consequences. The lake is used for recreational activities, such as boating, swimming, waterskiing, and fishing. Fish in the lake include walleye, bass, catfish, crappie, and bluegill. Caballo Lake is also a birdwatching site. Many migratory birds use the lake as