80 acres. Elev. 6,800 ft. One block south of Arizona 260, using either Rainbow Lake Road or Lake View Road. Much of the area surrounding Rainbow Lake is private property, so respect other's boundaries. Much of the shoreline is weedy; a boat is almost a necessity, except for the rocky areas where it's possible to set up a perch on the slabs. Try shore fishing off the north or west ends. A new boat ramp, car-top boat launching area, courtesy dock, restrooms, and a parking area have been recently added. The lake is a popular fishing hole for bass, trout, catfish, and bluegill. During the winter, bald eagles are common around the lake. Camp-grounds in the area usually are full in summer; best bets for beds are in motels, but campsites are available at Show Low Lake or Fool Hollow Lake.
By damming Walnut Creek in 1903, Mormon settlers created Rainbow Lake. Eventually, the settlement grew into the Town of Lakeside, now incorporated as the Town of Pinetop-Lakeside. Despite now being surrounded by homes, Rainbow Lake remains open to the public for fishing, boating, bird watching or just enjoying the outdoors.