The Town of Grand Lake is a Statutory Town located in Grand County, Colorado, United States. The population was 447 at the 2000 census.Established in 1881, Grand Lake sits at an elevation of 8369 feet (2551 m). It derives its name from the lake on whose shores it is situated: Grand Lake, the most extensive natural body of water in Colorado. The Town of Grand Lake was originally an outfitting and supply point for the mining settlements of Lulu City, Teller City, and Gaskill, but today is a tourist destination adjacent to the western entrance to Rocky Mountain National Park which also surrounds the lake and the town on three sides. Grand Lake was the Grand County seat of government from 1882-1888. It was incorporated on June 23, 1944.GeographyGrand Lake is located at .According to the United States Census Bureau, the town has a total area of 0.9sqmi, all of it land. .The town of Grand Lake serves as the western portal to Rocky Mountain National Park.Grand LakeGrand Lake is Colorado's largest and deepest natural lake, and is part of the headwaters of the Colorado River. The Lake became a component in the Colorado-Big Thompson Project (C-BT) in 1937, when it was recruited as a conduit for C-BT project water. The C-BT project diverts water from the Colorado River Basin east via the Alva B. Adams Tunnel under the Continental Divide and Rocky Mountain National Park to the Platte River and ultimately the Mississippi River basin.