Lugu Lake is a high mountain plateau lake, 2685 meters above sea level, located 202 km northeast of Lijiang on the border of Sichuan and Yunnan provinces, on the Yunnan-Guizhou Plateau in China. The lake is 48.5 square km in area and is quite deep, being about 93.5 m at its deepest point. The lake is in the shape of a horse's hoof - long from north to south and narrower from east to west. The vista of the lake changes constantly throughout the day. The morning mist mixed with the light of the rising sun gives the lake an orange glow covered by mist. When the light of sun causes the hills to throw their shadows onto the water, the lake has a jade green color. The lake is calm and dark green in the evening when the sun sinks, and is peaceful when night comes. Gentle wind blows and water ripples.

On the lake there are five islands. They are different sizes and are like green boats floating on the water. Heiwawu Island, Liwubi Island, and Lige Island are most notable. Heiwawu Island is in the center of the lake and has a variety of birds living on it. The smallest island on the lake is Nixi Island - an oblong rock covered with shrubs and moss. Besides the five islands, there are also three peninsulas and an island which is linked to a seawall on the shore by a path paved with small stones.

Mystery and charm surround the lake, partly because it was once an unspoiled place and still retains much of its totally natural beauty, but mostly because the Mosuo people who live there form a matriarchal society. There is no marriage. Men stay in the women's home as mates called 'Axia' and the intimate relationship lasts as long as they like. Children are brought up by women, and use the surname of their mothers. Families are composed of the members of the matrilineal kin. Women operate production and management, and hold the principal position in the society, forming a modern day 'woman's kingdom', which adds mystique to this place.