The only area in Australia that has a higher concentration of lakes than Fraser Island is Tasmania. Forty of Fraser's freshwater lakes are perched, in the tops of sand dunes high above sea level, this is quite remarkable given that there are only 80 such lakes in the world. Fraser Island also supports the largest perched lake in the world, Lake Boomanjin at 200 hectares, and the highest altitude perched lake, Bowarrady being some 120 metres above sea level. However, the 130 ha Lake McKenzie is by far the most popular and arguably the most picturesque.

Lake McKenzie is the most famous of all of the Fraser Island attractions, notable for its size, its crystal clear fresh water, the surrounding pure white sand on its beaches and the general peacefulness and tranquillity of the area. Lake McKenzie is an ideal place for swimming and picnics with its clean white sands and crystal clear blue water.

Perched lakes sit on layers of humus formed from organic matter falling form the rainforest canopy of thousands of years. The humus and sand cement together creating an impervious seal. Perched lakes are dependent on rainfall for the maintenance of water levels.