Rainbow Lake is a body of water in Kosciuszko National park, providing a lovely focal point for walkers and skiers. Diggers Creek was dammed to create a water supply for the then 'Hotel Kosciusko' which burnt down in 1951 (first opened in 1909). The resulting Rainbow Lake left a bit of heritage for people to enjoy. A faint track exists around the perimeter of the lake, providing a variety of views of the lake and access to some of the old fence line from the days when cattle were grazed in the area. The lake is a great place for picnickers, photographers and walkers, a magical spot on sunny days.