The Canterbury District Health Board is warning people to stay away from Lake Pegasus.
Canterbury DHB Medical Officer of Health Dr Cherly Brunton issued a public health warning for the lake on Monday after potentially toxic algae, also known as planktonic cyanobacteria, was found there.
The public should avoid the lake and animals, particularly dogs, should not be allowed near the water until the health warning has been lifted, she said.
The algal bloom can produce toxins harmful to humans and animals.
"Exposure may cause skin rashes, nausea, stomach cramps, tingling and numbness around the mouth and fingertips.