It is one of the largest inland bodies of water in Skyrim, comparable in size only to Lake Ilinalta. The city of Riften is located on its eastern shore, and Goldenglow Estate resides on the small grouping of islands in the middle of the lake.
The area around the lake was the location of a skirmish between the Nords and the Snow Elves in the 1E 139. At the order of King Harald, a Nordic army approached the lake in an attempt to drive the Falmer force north into Harald's forces.
In the first few days, the Nords encountered heavy resistance from the Elves, but the closer they got to the shores of the lake, the fewer Elves they encountered. Eventually, the Elves counterattacked, forcing the Nordic army to retreat in order to protect its rear. 
- The Elder Scrolls V: Skyrim (First appearance)