Located in close proximity to the larger cities of Granada and Masaya and other small villages, the crater of Apoyo was formed about 23,000 years ago, after a strong explosion left a hole measuring 6 kilometers (3.7 miles) in diameter.

Over the years the Apoyo crater filled with water and the slopes became covered with vegetation.

Still considered a sleeping volcano, there are still bubbling hot springs located in many areas of Laguna de Apoyo.

The Laguna de Apoyo has a surface of 2,110 hectares. (5213 acres) It is very deep: according to investigations the lowest level of the conic hole is 100 meters (328 feet) underneath the sea level and the shore of the lagoon is 75 (246) meters above sea level. The water is the most crystal-clear out of all fresh water bodies in Nicaragua and possibly in Central America.

 The temperature of the superficial water ranges from 27°C to 28 ºC (80-82 F).  Perfect for an enjoyable swim or paddle!
In 1991 the lagoon was declared as natural reserve (Reserva Natural Laguna de Apoyo). Today, further development is prohibited by law except for restoring existing structures.  Motorized  watercraft is also prohibited.