The earliest known use of Panguitch Lake was as a fishery by Paiute Indians (Panguitch means "big fish" in the Paiute language). Panguitch Lake was treated with rotenone beginning May 1, 2006 to potentially eradicate and control the invasive population of Utah chub, which were probably introduced accidentally by anglers who used them as live bait. The lake was restocked with 20,000 rainbow trout in 2006; as of 2016, the lake's fish population has recovered.
In April 2024, transverse cracking was discovered in the Panguitch Lake dam and it was put under observation.[1]Utah State Route 143 nearby was closed as a precaution. The National Weather Service issued a flash flood watch beneath the dam as a precautionary measure.[2] After beginning controlled water releases and doing a more detailed inspection of the dam, the Utah Division of Water Rights stated they do not believe a dam failure is imminent; but are continuing to monitor the structure.[3] By April 12th, preemptive evacuation notices were relaxed as officials felt the condition at the dam was improving.[4] A storage restriction was put on the reservoir to ease the burden on the dam.[5]
