The Antalieptė Lagoon lies in Zarasai district, on both sides of the highway Kaunas-Zarasai, in Gražutė Regional Park. The Lagoon was formed after blocking the Šventoji river 211 km from the mouth (45 km from the source) for Antalieptė hydroelectric in 1959. Antalieptė Lagoon is the second largest pond in Lithuania after Kaunas Lagoon. Antalieptė Lagoon is one of the most beautiful and cleanest water in Zarasai district.