Lake Shafer is one of two man-made lakes located in the Twin Lakes area of Monticello, Indiana. It was created along with Lake Freeman in the 1920's when two dams were built outside of Monticello on the Tippecanoe River. It remains a popular recreational area and helps generate an estimated $70 million in tourism revenue for White County.
Lake Shafer remains the more commercial of the Twin Lakes, largely in part to the presence of the Indiana Beach Amusement Park and Camp Resort. There are also a vast number of rental cottages and homes as well as boat rental marinas. Many of Lake Shafer's residents are part-timers, spending the majority of their time at the lake on weekends, traditionally April through October. The lake is often busy with boat traffic on summer weekends due to the increase in tourists.