Blue Lake really was named after a lake. Originally formed by flood waters of the Mad River, the 13-acre lake drew visitors from around the area beginning in the 1860s. In the 1920s the Mad River changed its course and took the small lake with it.

Located in the lower Mad River Valley, Blue Lake lies about 5 miles east of U.S. Highway 101 Just off state Highway 299. The city is known for its top-notch community recreation offerings.

One of the community's most well-known attractions is the Dell'Arte Company which includes the Dell'Arte School of Physical Theatre. The company's core members have been creating collaboratively since 1977 and have earned an outstanding international reputation for their extraordinary physical performance style seen at numerous world festivals and U.S. tours.

The Dell'Arte Mad River Festival takes place each June and includes performances in theater, music, comedy, storytelling, clowns, puppetry and more by local and visiting physical theater artists. Hosted in Dell'Arte's two theaters in Blue Lake, plus other venues in the area, the festival has presented troupes from Brazil, Russia, Europe, Canada and across the United States, as well as top solo performers from around the world.