Lake James is a natural lake located in the northeast corner of the state of Indiana in the United States. It is popular as a place for boating and fishing and has a wide variety of wildlife. As the state's fourth-largest natural lake, it has over 1,200 acres of surface water, and consists of three basins. Its water quality is ranked among the best in Indiana lakes. The lake is t…Lake James is a natural lake located in the northeast corner of the state of Indiana in the United States. It is popular as a place for boating and fishing and has a wide variety of wildlife. As the state's fourth-largest natural lake, it has over 1,200 acres of surface water, and consists of three basins. Its water quality is ranked among the best in Indiana lakes. The lake is the largest of a group of lakes known as the James Lake Chain. These lakes are located mostly in Steuben County, Indiana, but also extend into southern Michigan.