The Town of Grand Lake is a Statutory Town located in Grand County, Colorado, United States. The population was 447 at the 2000 census. This town is at an elevation of 8437 feet (2572 m) and was established in 1879. It derives its name from the nearby Grand Lake, the largest natural body of water in the state. The town was originally an outfitting and supply point for the mining settlements of Lulu City, Teller City and Gaskill, but today is more of a tourist town. It was incorporated June 23, 1944 and briefly held the county seat from 1882 to 1888.