Lake Talbot was formed in 1924 when the bank of the irrigation canal gave way, flooding the river flat between the canal and Bundigerry Hill. Lake Talbot was named after William Talbot, Narrandera's Shire Clerk at the time, who argued that the flooded area should be allowed to remain to create a safe swimming hole for the town.

Check out great views of the Lake from the Lake Talbot Skywalk, accessed via the carpark at Lake Talbot Water Park.