Yuanyang Lake sits on the Xiaochiyuan Stream (a tributary of Xidong Stream) within Jiangdun Village, Shunyang Township. Formerly known as Xiaochiyuan Reservoir, construction of the reservoir began in December 1975 and was completed by the end of 1980. Its impoundment submerged 389 residential buildings (covering 5,888 square metres) in Xiaochiyuan and Shanghongyang, 300 mu of farmland, 6 kilometres of forest railway and 5 kilometres of telecommunication lines.

In September and October 1996, the newly appointed Party and government leadership team of Shunyang Township inspected forest vegetation protection around the reservoir area. They spotted several pairs of mandarin ducks frolicking on the water surface, hence the lake was named Yuanyang Lake, meaning Mandarin Duck Lake.

The lake lies 11 kilometres from the township market town with convenient transportation access. It boasts an expansive water surface; the total area covered by the lake basin and surrounding forests reaches 34.5 square kilometres, among which the water surface spans 940 mu, and the total water storage capacity stands at 12.76 million cubic metres. Green mountains enclose both banks of the lake, sheltering 3,600 mu of primeval forest.

Boasting an elegant environment and crystal-clear water, the lake has been under artificial ecological protection for four years. Flocks of mandarin ducks now inhabit the lake, and wild ducks can be seen everywhere, with their numbers peaking every late autumn and early winter. The lake draws an endless stream of tourists daily during this period.

The Yuanyang Lake Forest Tourism Resort is currently under planning and construction. It will be built as a garden-style resort integrating lake sightseeing, tourism, summer retreats, entertainment, planting and breeding services. Recreational facilities will include water pleasure boats, an aquatic music tea lounge, angling grounds and more leisure activities.