Nicola Lake is a glacially formed narrow, deep lake located in the South-Central Interior of British Columbia, Canada approximately ten kilometres northeast of the city of Merritt. It was a centrepoint of the first settlements in the grasslands lying south of Kamloops, and today is used for recreation and as a water storage site to provide irrigation and water flows to fisheries downstream in the Nicola River. The lake is important in the history of the local Nicola people as the location of one of their major communities, Nicola Lake Indian Reserve No. 1, which lies on its eastern shore and is the home of the Upper Nicola Indian Band.