Constructed by soldiers who had returned from the Napoleonic wars and thus named after the Battle of Waterloo. They were unemployed, so Thomas Nicholson provided work and income to landscape a former quarry. It took two years to build, has an average depth of 60 feet (18m) deep and covers 33 acres (0.13km2). It was originally used for boating, and for a period there were trips around it in a steamboat called the Maid of Athens (which was sunk in the lake at the end of its useful life). In 1900 this was replaced by an electric launch, the Mary Gordon, which operated until 1923. A cafe was constructed above the boathouse. The lake is now used for fishing, but not boating. The lower part ends in a dam which was once a waterfall but is now a steep grassy bank.