The Town of Lake City is the Statutory Town that is the county seat and the only incorporated municipality in Hinsdale County, Colorado, United States. It is located in the San Juan Mountains in a valley formed by the convergence of Henson Creek and the headwaters of the Lake Fork of the Gunnison River about seven miles (11 km) west of Uncompahgre Peak, a Colorado fourteener. Lake City is named after nearby Lake San Cristobal.