Lake Muskoka is located between Port Carling and Gravenhurst, Ontario, Canada. The lake is surrounded by many cottages. The lake is primarily within the Township of Muskoka Lakes, with the southeast corner in the Town of Gravenhurst. The Town of Bala is located on the southwest shores of the lake, where the Moon River starts. Lake Muskoka is connected to Lake Rosseau through the Indian River and lock system at Port Carling.