Lake City is a statutory town that is the county seat, the most populous community, and the only incorporated municipality in Hinsdale County, Colorado, United States. The population was 432 at the 2020 census. It is located in the San Juan Mountains in a valley formed by the convergence of Henson Creek and the headwaters of the Lake Fork of the Gunnison River about seven miles east of Uncompahgre Peak, a Colorado fourteener. Lake City is named after nearby Lake San Cristobal.