Located on Gladstone Road, between Pioneer and Gladstone, in northeast Tasmania, the Little Blue Lake is found on the way to Mt. William National Park.

Little Blue Lake is one of several in the area that is the result of alluvial tin mining. When the miners packed their bags and left town, the pit was filled with water to become a recreational spot.

Visitors are warned about swimming in the lake because the water is highly contaminated with toxic heavy metals from past tin mining activity. The shores are used regularly for camping and parties. Signs warning against swimming are frequently removed by vandals. The cliffs that line some sides of the Little Blue Lake are 10 meters high.

The area is also popular for gem hunters, with smokey quartz, amethyst, and topaz that live abundantly in the region.