The Chichi earthquake that devastated Taiwan nine years ago was centered nearby and badly damaged the lake area, where it brought down several large hotels. It also destroyed many local homes, leveled a pavilion on the Thao tribe's sacred Lalu Island, and badly damaged both the Shuishe Pier and the road around the lake.
9 年前的 921 地震，位在震央集集附近的日月潭，受創嚴重，當時周邊天廬、九龍、教師會館、中信等大型飯店倒塌，不少民宅震毀，邵族的祖靈聖地拉魯島（舊光華島）上的月下老人亭全毀，水社碼頭滿目瘡痍，環湖公路更是柔腸寸斷。