Rainbow Lake is a small lake that was formed when Diggers Creek was dammed many years ago, as a water supply for the long gone Kosciuszko Hotel. Accessing the lake entails a short (30 minute) walk from the carpark area through bushland. The area is a popular bushwalking spot. The Lake holds small rainbow and brown trout and they are plentiful but mostly small, with the odd fish to 1kg. Both Fly and lure fishing are permitted. From Rainbow Lake you can fish all the way down to Sponars Lake, following Diggers Creek. This Lake is also in a high alpine area and is often covered in snow during winter. Always be prepared for bad weather, even snow in summer, as it is about 30 minutes walk to the car from the parking area.