The lake, of glacial origin, is in the upper reaches of the Ghoi nala(refer Leomann maps:India Himalaya Map 4) which is tributary of Budhil river, a tributary of the Ravi River in Himachal Pradesh. However, the lake is the source of a tributary of the Budhil River, known as ‘Manimahesh Ganga’. The stream originates from the lake in the form of a fall at Dhancho. The mountain peak is a snow clad tribal glen of Brahamur in the Chamba district of manimahesh range. The highest peak is the Mani Mahesh Kailas, also called ‘Chamba Kailash' (elevation ) overlooking the lake. The lake, considered a glacial depression, is sourced by snow-melt waters from the surrounding hill slopes. Towards the end of June with ice beginning to melt, numerous small streams break up everywhere, which together with the lush green hills and the myriad of flowers give the place a truly remarkable view. The snow field at the base of the mountain is called by the local people as Shiva’s Chaugan Shiva's playground. According to a belief, Lord Shiva stayed here with his consort Parvati.