Laguna Lake and Park Laguna Lake is a shallow body of fresh water orientated along a northwest to southwest axis at the eastern end of the Los Osos Valley in the outskirts of the City of San Luis Obispo. The natural watershed for the lake includes the southern flanks of Bishop's Peak and San Luis Mountain and the northern slopes of the Irish Hills.
The area on the northeastern side of the lake was established as a city park in the 1960’s. The park is bordered by Madonna Road on the east, areas to the north and west are privately owned agricultural parcels used for the most part as grazing land. The area on the southwestern side of the lake is a residential development. In addition to the lake, Laguna Lake Park includes areas of nearly level to gently sloping grassy fields and more steeply sloping rocky hills that extend along the northeastern part of the park. Various parts of the eastern end of the park are used for recreation and playgrounds, picnic areas, jogging paths and exercise areas which have been established. Recreational use of the lake involves fishing and boating (nonpowered). Because the Los Osos Valley is a natural wind channel, a windbreak of Eucalyptus trees was planted west of the developed areas of the park. Various other trees, some native and some exotic, are located in the developed areas as ornamentals and shade trees. San Luis Obispo Creek The San Luis Obispo Creek is a picturesque, shady stream that originates as a mountain creek near Cuesta pass; the creek then flows from northeast to southeast through San Luis Obispo, meanders through grass covered foothills, and enters the Pacific Ocean at Avila Beach. The creek is about 15 miles long, 1 to 20 feet wide, with water levels fluctuating from 1 to 3 inches during the summer to 1 to 2 feet during nonflood winter conditions. The watershed feeding the creek incorporates 84 square miles of the coastal slope of the Santa Lucia Mountains, and the eleven tributaries include: Brizziolari, Stenner, Reservoir Canyon, Prefumo, East Fork, Castro, Davenport, Froom, and See Canyon Creeks. Stenner and Brizziolari Creeks originate in the Los Padres National Forest, converging southeast of California Polytechnic State University and form a confluence with San Luis Obispo Creek at the northern end of the city.
San Luis Obispo Creek begins close to the top of the Cuesta Grade and is joined by Reservoir Canyon Creek north of San Luis Drive. Prefumo Creek drains the northeastern side of the Irish Hills range southwest of the City, and joins SLO creek at the southern end of the city close to the SLO wastewater treatment facility. Froom Creek and Castro Canyon Creek drain the eastern side of the Irish Hills and join SLO Creek south of the city of San Luis Obispo. East Fork and Davenport Creeks drain the Islay Hill area and also join SLO creek south of the City. See Canyon Creek drains the southwest portion of the Irish Hills range converging with SLO Creek near Sycamore Mineral Springs just before it enters the Pacific Ocean.San Luis Obispo creek supports many types of wildlife due to the wide variety of habitat types offered by the creek system. Native fish such as steelhead trout, speckled dace, prickly sculpin, threespine stickleback and pacific lamprey inhabit the creek. The streamside (riparian) vegetation plays host to a wide variety of birds including; red-shouldered hawk, western bluebirds, yellow-rumped warbler and white-crowned sparrow.
Reference. City of san luis Obispo natural resources