The lake is approximately long, from south to north, and wide, from east to west, and at its deepest. It covers . Lime Lake is part of the Good Harbor Bay watershed. In addition to a number of small creeks and springs, it is fed by Lime Creek at the southwestern corner of the lake.
Shetland Creek flows out of the north end of the lake and into
Little Traverse Lake, and from there
Shalda Creek flows out of Little Traverse Lake and into Good Harbor Bay on
Lake Michigan. Migratory fish from Lake Michigan have access to Lime Lake through this connection when there are no
beaver dams or other natural obstructions.
Chinook salmon have been observed
spawning in Lime Creek. Lime Lake has a healthy fish community with abundant species diversity including
brown trout,
largemouth bass,
northern pike, and
smallmouth bass. The south and north ends of the lake feature lowland swamps dominated by
cedar,
hemlock, and
birch trees. Rolling hillsides to the east and west feature upland hardwoods and
conifers.
Teichner Preserve, a parcel located on the northeast shore of the lake, was gifted to the Leelanau Conservancy in 1996. Open to the public, a trail and boardwalk lead through extensive wetlands and forested lowlands to the lake shore. The Lime Lake Association is the riparian association representing property owners on Lime Lake. == Lumber-era history ==