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Panguitch Lake was originally a large natural lake (777 acres) that has now been expanded by the creation of a 24-foot (7 m) dam to become a reservoir with a maximum surface area of 1,248 acres (5 km2). The lake is located on the Markagunt Plateau, between Panguitch, Utah and Cedar Breaks National Monument. The lake is located in the Dixie National Forest in a high tourist use area near three national parks and one national monument.