Lake Grassmere, south of
Blenheim and south of the mouth of the
Awatere River, is a shallow lagoon protected from the open sea by a single barrier beach covered by sand dunes. It is on the north-easterly extension of the Ward depression. Covering an area of , it has no natural inflow and is prone to strong warm winds. Close to the sea, it also has very high
salinity. Because of these geographical characteristics, it is ideal for natural
salt extraction. Grassmere has been divided into solar
evaporation ponds. Seawater is pumped in, and moved between ponds over several months, increasing in salinity with each evaporation period. As salinity increases,
crystallised salt forms and is extracted. These crystals give the lake a distinctive pink colour. Grassmere's area varies between ; this maximum is attained only in rare floods. The watershed is small. The climate, with a low average rainfall of and prevailing strong and dry north-westerly winds, provides Lake Grassmere with the suitable conditions required for natural economic salt production.
Climate {{Weather box|width=auto == Early history ==