Goulburn-Murray Water has issued a health warning, advising the public to avoid direct contact with the water until algae detections return to safe levels.
Warning signs have been installed at all major recreational areas around the lake.
While Lake Eildon remains open, activities involving contact with the affected water are strongly discouraged.
G-MW water quality co‑ordinator Bianca Atley said blue‑green algae occurred naturally in waterways but could pose serious health risks to people and animals.
“Blue‑green algae occur naturally in water bodies but contain toxins harmful to humans and animals,” Ms Atley said.
“Contact with it can cause rashes, sore eyes, ears and nose, or, if swallowed, nausea or vomiting.
G-MW is also urging the public to keep pets and livestock away from affected water and recently irrigated areas.
Water from Lake Eildon is currently not suitable for cooking, drinking, washing or showering, even if it is boiled.
“There is no single factor G-MW can pinpoint as the cause of high algae levels at Lake Eildon,” Ms Atley said.