Scientists believe Lake Eacham, and nearby sister Lake Barrine, were formed approximately 12,000 years ago by volcanic activity. Hot magma rose from inside the Earth's crust, boiling the below surface water table that existed in the region. The steam was trapped underground until pressure caused massive explosions, destroying much of the trees, animals and other plant life that existed overhead. Eventually, the water cooled and we were left with the crater lake that we see today. The local Ngadjon -jii (Aboriginal peoples), name this lake Wiinggina and tell a parallel, matching story of the Lakes origins, as follows:

"Two young fellas were trying to spear that wallaby. But they missed and hit a flame tree. That’s a sacred tree. The young fellas not supposed to be out hunting. They weren’t initiated. Their elders told them to stay put, not go out hunting. But they didn’t listen. When they pulled their spear out, part of a grub came out with the spear, which was a witchetty grub. They started cutting down that tree to get more grubs. When they cut down that tree, the ground began to shake. Those two fellas had made Yamini (rainbow serpent) angry. Then the sky turned orange, then all these people back at the camp, the earth went from underneath them, sucked them in, whoosh, they all got drowned. Where they were camped became Bana Wiingina (Lake Eacham)." (Warren Cannendo, Ngadjon-Jii)"

This story, in all its local versions, is part of an indigenous oral history and mythology believed to be an oral record recalling those volcanic events that occurred 12 000 years ago, making it an oral record more than 10 000 years old.