The lake, which is about 2 km from Keylong, is according to locals a cause of worry as it could bust and flood the nallah.
A 400 KW mini power house of HIURJA located downstream the lake is in the danger as bursting of the lake could flood and damage the project, sources said.
"The rains also flooded 15 bighas of land and damaged three houses," said Bir Singh Thakur, Deputy Commissioner of Lahual and Spiti.
The SDM, Lahaul visited the spot to take stock of the situation and asked the people to take necessary precaution.
A team of geological experts would be called if necessary to find out the reason for sudden increase in discharge of water in the nallah, the DC said.