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A strange, misty lake whose waters are unusually calm. The water looks like a mirror at first glance, reflecting the image of the light mist and making it very difficult to see beneath the surface. The mist is magical and attunes with any creature in the area. Once attuned with a creature it then forms an illusion of what the creature wants the most on the island that is at the center of the lake. Because of the mist its almost impossible to see that the illusion is really an illusion, unless it tries to interact with something real. Even then the victim has to realize that there was no interaction where there should have been, which is difficult.
The lake is home to the ancient thaniathan, a fearsome beast which takes advantage of the illusions to catch it's prey. Some of the islands on the lake are inhabited by a dangerous tribe of water fairies. Most of the predators in this zone use illusions and mind-affecting spells to hunt.
Temple of Aureusrana
Inhabitants: azure frogs
This sunken temple lies on the bottom of the Lake of Illusions, only a short distance from the shore. It was crudely built long ago out of grey granite as a place where an ancient tribe could worship one of their totem animals, the azure frogs. They hoped that by leaving an offering in front of a life sized golden replica of the frog they would then be blessed with some of the frog's powers, such as the ability to teleport. Most of their offerings were perishable things that have long since rotted away, but some of their offerings were longer lasting and of more value, such as small, generally uncut, gemstones, bits of precious metal, and on a few rare occasions a minorly magically enchanted items.
Over time the land beneath the temple shifted, and it began to sink into the lake. Unable to fit the golden frog (or most of the offerings built inside) through the temple's door, worshipers abandoned it.
Now the temple lies submerged, home to all sorts of aquatic life including the azure frogs that were once worshiped here.
- Credits to Tifalover88 for ideas to develop the lake, and to Oldman40k2003 for the idea and design of the Aureusrana temple.