During the summer, significant amounts of glacial rock flour flow into the lake from a nearby glacier, and these suspended rock particles are what give the lake a bright, turquoise colour. Because of its bright colour, photos of the lake often[when?] appear in illustrated books,[example needed] and the area around the lake is a popular sightseeing spot. In 2021, Parks Canada completed improvements to the lake viewpoint, trails, and parking areas.[3] The lake is best seen from Bow Summit, the highest point on the Icefields Parkway.[4]
The lake is fed by Peyto Creek, which drains water from Caldron Lake and Peyto Glacier (part of the Wapta Icefield). Peyto Lake is the origin of the Mistaya River,[5] which heads northwest from the lake's outflow.