Candlewood Lake is a manmade lake located in Fairfield and Litchfield counties of Western Connecticut, in the northeastern United States. At 8.4 square miles, it is the largest lake in Connecticut and the largest lake in the New York Metropolitan Area. The lake is bordered by the city of Danbury, and the towns of Brookfield, New Fairfield, New Milford, and Sherma…Candlewood Lake is a manmade lake located in Fairfield and Litchfield counties of Western Connecticut, in the northeastern United States. At 8.4 square miles, it is the largest lake in Connecticut and the largest lake in the New York Metropolitan Area. The lake is bordered by the city of Danbury, and the towns of Brookfield, New Fairfield, New Milford, and Sherman. Some of the most expensive real estate in the Greater Danbury area is located along the shores of the lake.