At the center of the lake sits a tiny island that has been renamed with each change of power. The Thao tribe, one of Taiwan's indigenous ethnic groups and the original inhabitants of the lake's shores, consider it holy ground. Under Japanese rule, beginning in 1895, the island became Jade Island. After Chiang Kai-shek's Nationalist government retreated to Taiwan, it was rechristened Kwanghwa Island, and in 1978 a pavilion was built where annual wedding ceremonies took place. The 921 earthquake of 1999 destroyed the pavilion and sank most of the island. In the years that followed, as Taiwan's society grew more attentive to indigenous rights, the island was given a Thao name: Lalu. Today, a white marble deer stands on its diminished surface, immortalizing the Thao legend of a white deer that led hunters to this lake.

Sun Moon Lake's modern shape is partly engineered. In 1919, the Japanese colonial government built the Tosha Dam at the southern end of what had been a crescent-shaped lake, raising the water level and expanding the surface area. The dam served a hydroelectric project that would become one of the most important infrastructure achievements of its era. When the first power plant was completed in 1934, it was considered a landmark of colonial engineering. Wujie Dam, finished the same year, diverts water from the Zhuoshui River to feed the lake and increase generation capacity. The Jiji Line railroad was built specifically to haul construction materials to the site. Today, several hydroelectric plants operate around the lake, including the Mingtan Pumped Storage facility, and the infrastructure that reshaped the lake continues to provide power to central Taiwan.

Sun Moon Lake is one of Taiwan's thirteen national scenic areas, and it draws crowds to match. In 2023, tourist visits reached 5.3 million, up from a pandemic low of 3.03 million in 2021. Biking and hiking trails ring the lake, ferry boats connect three piers, and the Sun Moon Lake Ropeway links the shore to the Formosan Aboriginal Culture Village. Among the annual events, the Swimming Carnival stands out. Launched in 1983, this open-water swim attracts tens of thousands of participants and is ranked among the Top 50 Open Water Swims in Asia. Anyone over ten who can handle the distance is welcome, regardless of nationality. The carnival, accompanied by fireworks, laser shows, and concerts, transforms the lake from scenic backdrop into arena.

The rising waters that created the modern lake also displaced its temples. The Wen Wu Temple was rebuilt after the dam forced smaller shrines to relocate, and today its palace-style halls overlook the water from a hillside perch. Tzu-En Pagoda, ordered built by Chiang Kai-shek in 1971 in memory of his mother, rises above the eastern shore. Jianjing Temple and Syuanguang Temple add further layers of devotion along the perimeter. These structures are not ornamental. Worshippers still come to burn incense, consult fortune sticks, and make offerings. The temples anchor a landscape that might otherwise feel purely recreational, reminding visitors that this lake has been sacred ground since before it was a tourist destination.

The lake is a productive but troubled ecosystem. Introduced giant snakehead fish threaten native species, and the Nantou County Bureau of Agricultural Affairs runs an eradication program that uses electrofishing to target juvenile snakeheads. The ecological challenges mirror a political one: in 2012, a depiction of Sun Moon Lake appeared in newly issued People's Republic of China passports, prompting protests from Taipei. The lake, it seems, is claimed by more than one power, just as it has always been. But the Thao people, whose population numbers only in the hundreds, maintain the oldest claim of all. Their presence around the lake predates every dam, every temple, and every name the colonizers gave. In the end, Zintun endures.