Community of Manistique. The harbor town of Manistique is located on the Lake Michigan shoreline and surrounded by state and national forest land for great recreational opportunities. Access to Indian Lake State Park - West of the highway. Indian Lake State Park is located on Indian Lake, the fourth largest inland lake in the Upper Peninsula with an area of 8,400 acres. It is six miles long and three miles wide. The lake was once called M'O'Nistique Lake. Camping with electrical service and flush toilets.