Located in the northeast corner of the District of Muskoka, Lake of Bays offers a natural landscape of forests, rocks, lakes and wetlands. Because of its natural beauty, it is an important cottaging, recreation and tourism destination in Ontario. Three small communities of Baysville, Dorset and Dwight as well as waterfront and rural areas provide various types of settlement and commercial opportunities. Currently, the economy of the Township is primarily based on tourism, recreation, and the service sector with forestry and aggregate extraction contributing as well.
The Township of Lake of Bays with its permanent population of 3,000 and seasonal population of 18,000 encompasses approximately 66,000 hectares (163,083 acres) of land. The Township is situated 193 kilometres north of Toronto, within the District Municipality of Muskoka. The Township of Lake of Bays was established in 1971 from the former Townships of Franklin, Ridout, McLean and Sinclair/Finlayson (unorganized) as one of six area municipalities within the District of Muskoka.