Mud Lake is located in Jefferson County on Hwy 33 northwest of Idaho Falls.
In the early history of this area, the land was covered with native grass, sagebrush, and sand. It was a natural habitat of buffalo, coyotes and jackrabbits. A small lake or water hole furnished water for the stage horses traveling from the settlement along the Snake River, to the mountains on the west.The idea of using this little lake for irrigation purposes was conceived, and William (Bill) Owsley among others helped develop this plan in 1910. From this small beginning (and the later development of flowing wells), this prosperous farming community advanced.