Grand Lake is a statutory town in Grand County, Colorado, United States. The population was 471 at the 2010 census.Established in 1881, Grand Lake sits at an elevation of 8,369 feet and derives its name from the lake on whose shores it is situated: Grand Lake, the largest 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 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.