Indian Lake was built between 1850 and 1857 as a feeder lake for the Miami and Erie Canal. It was known as Lewistown Reservoir until 1896, when the lake was purchased by the state of Ohio for a state park. In the 1920s, S. L. Wilgus built an amusement park on the shore of the lake near Russell's Point. Attractions included a boardwalk along the lake and a roller coaster. The park closed in the 1970s.

Nicknamed "Ohio's Million Dollar Playground" or "Atlantic City of the Midwest," Sandy Beach Amusement Park opened here on May 29, 1924. The park at Indian Lake featured a 2,000-foot long roller coaster and other popular rides, a boardwalk, and the Minnewawa Dance Hall. The Minnewawa and its succeeding dance pavilions hosted the greatest names of the Big Band era, and thousands of people came from all over Ohio to listen and dance to these popular entertainers some of which included, Louis Armstrong, "Count" Basie, Miles Davis, "Duke" Ellington, Peggy Lee, Patti Paige, Dinah Shore, Rosemary Clooney, Nat "King" Cole, Bing Crosby and Frank Sinatra.  Sandy Beach Amusement Park closed in the early 1970s. The lone remnant of the park is the steel arch bridge that spans the harbor.

Much has been written about rich history around Indian Lake. The Indian Lake Area Historical Society has a wonderful book of the History of the Area. It is available at the Chamber office, or you can purchase it online by clicking on the Donate link on the left.