Following the irrigation development, the lake began to be used for recreation. People would lease land from the Western Irrigation District (WID), build cabins and stay on the lake during the summer months.
In 1959, the Chestermere Cabin Owners Association (CCOA) was incorporated with approximately 50 members. The CCOA held events, bought a fire truck for the community, worked to reduce pollution in the lake, planted trees, and arranged for electricity and natural gas for the cabins.
As more people began to live around Chestermere Lake, residents wanted to secure long-term leases. In 1975, the CCOA bought the land from the WID and then transferred it to the residents. By 1977, the lake boasted 120 permanent homes and gained official status as the Summer Village of Chestermere Lake.
As a summer village, the residents of Chestermere gained more political influence and were able to begin adding services and amenities or encouraging infrastructure and developments such as fire and protection services, improved roads, a community hall, street lights, a recreation centre, local businesses, and a golf course.