In 1835, Ziba S. Beardsley had come to the shores of the lake and commented that the "waters were as clear as crystal", thereby giving the lake and the city, its name.The economy of Crystal Lake is fairly decentralized with small, specialized, local-owned shopes and restaurants as well as broader-ranged national chains. The overall quality of life and education in Crystal Lake is quite high. A robust city park system and continued revitalization of the downtown area, including a new city hall, have continued to make Crystal Lake an attractive community for new residents. Another positive note for the city is that Crystal Lake is the city where the tradition of anonymously giving gold coins to the Salvation Army began in 1982.

Attractions:
Attraction in Crystal Lake include the Dole Mansion , the Raue Center for the Performing Arts and the historic downtown district. The downtown district, which recently has undergone a revitalization, is home to many small specialty shops and businesses, and is a popular local shopping district.