Agastya Lake is located at just a km from the Badami Bus Station. Said to possess healing powers, this lake faces all the caves temples of Badami and is surrounded by the red sandstone Bhoothnath Temple which lies on the eastern bank. There are no boating activities as such at the lake. The local people wash their clothes and take a bath in the water of Agastya Lake. The view of the hills from the banks looks beautiful.