Palmer Lake is a Statutory Town in El Paso County, Colorado, United States. The population was 2,420 at the 2010 census. Palmer Lake was founded by General William Jackson Palmer in 1871 and was incorporated in 1889.Palmer Lake is one of three communities in the Tri-Lakes region between Denver and Colorado Springs. The three lakes are Palmer Lake, Monument Lake, and Lake Woodmoor. Located off Interstate 25 near two major metropolitan centers, Palmer Lake is a growing community on the Front Range of the Rocky Mountains.Downtown Palmer Lake, though small, features cozy restaurants, such as O'Malley's Steakhouse and Pub on Colorado Highway 105. There are also a library, town hall, and an historical museum. Visitors can enjoy a coffee shop, bakery, antique shopping, boutiques, and art galleries.The town's water comes from two reservoirs in the mountains behind the town and from wells. Both reservoirs and Monument Creek, which flows out of them, are considered part of the town's watershed.