Construction of Lake Fyans commenced in October 1914 and was completed in 1916 to provide additional water to the channels, as Lake Wartook and Lake Lonsdale were proving to be insufficient.

Prior to 1914, the area, now known as Lake Fyans was a large swamp, that was densely covered with dark green rushes to a height of three metres.

When viewed from a distance, the impression was of blackness and so the area was known as the Black Swamp.

It was a haven for a large number of wild duck and various other water-birds.

A report in the Stawell News in late September 1914 said that it was gratifying to learn that the State Rivers and Water Supply Commission had resolved to proceed with the Black Swamp scheme and the news was received well by all those involved.

The storage will have a capacity of 17,000 acre feet and an average depth of fourteen feet and will be capable of enlargement.

It will be supplied from Fyans Creek and will be used in conjunction with Lake Lonsdale, about five miles distant. The Town of Stawell will benefit by the work, as forty men are to be employed and they will camp at the Swamp. Goods will be purchased in Stawell and thus the business people will benefit considerably.

It was reported in the Stawell News April 15, 1916 that the Minister of Water Supply 'motored' out to the Black Swamp to inspect progress on the new lake.

He advised that the whole project would cost around £15,000 and it had been decided to re-name the Black Swamp as Lake Fyans.

It was to be named after Captain Fyans who was the first Land Commissioner and who resided in Ararat.

This Work continued on the construction for two years. By October 1916 the drought had broken with heavy rains that had fallen all winter and a big flood inundated the nearby areas of Pomonal and Bellellen. Work officially finished and the lake was declared full. On completion of the project, the extension of the storage and channel systems meant that an area of 8,000 sq. miles of the Wimmera Mallee would now be supplied with water which represented the largest single scheme in the world.

On January 16 1955 the Stawell Yacht and Power Boat Club was opened by the Hon. Jack Jones, M.L.C. (from Stawell). The modern two story club house had an entertainment area upstairs with the ground floor used to repair and maintain the club's boats.

In April of 1963, the Lands Department advised the Stawell Shire and Borough Councils that they were the Committee of Management of the Lake Fyans Recreation Reserve. They suggested that a fee be charged to cover the cost of maintenance of the camping area and facilities at Kelly's Bank. This Eastern area of camping and recreation facilities known as Kelly's Bank is believed to have been named after Mr Claude Kelly who was reported to have been one of the contractors who worked on the Eastern Bank.

More recently, the lake's most prominent role in the water supply system has been to supply water to Stawell, Ararat and Great Western.

The Lake Fyans camping and recreation area is now a modern, up to date facility, popular all year round.

It is now under the Management of Grampians Wimmera Mallee Water.