Originally known to the First Nations of the Okanagan Valley as Kliluk, Spotted Lake was for centuries and remains revered as a sacred site thought to provide therapeutic waters.[2] During World War I, the minerals of Spotted Lake were used in manufacturing ammunition.
Later, the area came under the control of the Ernest Smith Family for a term of about 40 years. In 1979, Smith attempted to create interest in a spa at the lake. The First Nations responded with an effort to buy the lake, then in October 2001, struck a deal by purchasing 22 hectares of land for a total of $720,000, and contributed about 20% of the cost. The Indian Affairs Department paid the remainder.