It is located 70km southeast of Edmonton, near the town of Tofield, and lies in the hydrographic basin of the North Saskatchewan River.[4] As recently as 1990, the lake had a total area of 139km2 (54sqmi) and a maximum depth of only 2.3m (7ft 7in)[4] Like similar "prairie pothole" lakes, Beaverhill lake receded significantly after much of its headwaters were diverted; between 1999 and 2009, it lost about one-quarter of its depth.[5]
The lake is an important bird habitat and has been designated as a "National Nature Viewpoint" by Nature Canada (formerly known as the Canadian Nature Federation) in 1981. The Beaverhill Natural Area was established in 1987 to protect the lake and its surrounding area. Beaverhill Lake Heritage Rangeland Natural Area is also established on what were the shores of the lake.[6]