Kodai Lake was artificially created in 1863 by Sir Vere Levinge, the then Collector of Madurai. He dammed and merged a marshy patch of land fed by the Palani Hills streams to form this lake. Initially intended for irrigation and water supply, it quickly became a prominent recreational spot. The introduction of boating facilities further enhanced its popularity. Over time, the area around the lake has developed with parks, cycling paths, and various tourist amenities, making it the central attraction of Kodaikanal.