A coastal freshwater lagoon situated in the Waterhouse Conservation Area on the north-east coast of Tasmania, receiving its water from local catchment runoff and also from a small drain (formerly a creek) known as Tobacco Creek. The lake is an excellent example of a small freshwater lake impounded behind coastal dunes. The site contains over 40 species of aquatic and semi-aquatic plants, and also the green and gold frog (Litoria raniformis, also known as the Southern bell frog) and the dwarf galaxias (Galaxiella pusilla), which are both listed as vulnerable nationally. The area around Little Waterhouse Lake is significant to indigenous groups. The North East people used the heaths and plains behind the coast, which they kept open and clear by burning. The Site is currently used for various recreational activities, particularly fishing as the lake is stocked with brown trout and rainbow trout.