Carter Lake is located in the foothills west of Loveland at an elevation of 5,760 feet. It is a part of the Colorado-Big Thompson Project operated by the Bureau of Reclamation and the Northern Colorado Water Conservancy District. The purpose of this water project is to divert water from the west slope to the east slope for drinking water, irrigation, and hydropower generation. The Bureau of Reclamation is solely responsible for power generation. The agencies jointly manage water levels for irrigation, municipal, and industry use.