There are tons of level 54-55 ghosts around this lake. (Suffering/Anguished Highborne, etc.) These ghosts are pretty weak, drop 2-8 silver, a lot of green items and even have a tiny change of dropping epics. Random chests also spawn on this area. The lake is often heavily farmed but other than that it's a great farming spot.

Also, a weekly water elemental invasion also takes place around the lake. It goes on until the boss, Princess Tempestria is slain. The elementals have a good drop rate for Essence of Water and the boss drops good very valuable blue items like Ace of Elementals. You've better group up for the boss though, soloing her isn't impossible but still pretty hard to do.