Lake Axehead is a lake where the Otter Clan is located. It is one of the main locations in Outcast. It feeds the River Axehandle and the Widewater. There are fifteen small islands in this lake, the biggest of which is the Island of the Hidden People. There is a reedbed on the western side of the lake, and the southern side is where the Otter Clan Camp is located.
On the northern banks of Lake Axehead are the Bay of Lost Things and the healing spring and waterfall. At its eastern bank is the Ice River, and on its western bank is Hogback. The northern part of it borders Walker's Valley, to the southeast is the Deep Forest, and to the southwest is the Open Forest.