Lago Alajuela is located east of Panama City about 1/2 way to the City of Colon. It was formerly known as Madden Lake. The lake is formed by Madden Dam on the Rio Chagres. Lago Alajuela is the source for most of the drinking water in Panama City and also used as a back up water resevoir for the Panama Canal.
Lago Alajuela and its more well-known neigbor, Gatun Lake, are popular for boating, bass fishing and recreational.
There are a growing number of homes and full time residents in the area of Lago Alajuela which is conveniently located just 30 minutes drive from Panama City and the National Transportation Terminal, Albrook Mall and many other shopping areas.