Sugarloaf Reservoir is a reservoir at Christmas Hills north-east of Melbourne. It was completed in 1981. Its total capacity is 96 GL. As of February 12, 2010 the reservoir sits at 67.1% of capacity. It reached nearly 80% in late 2009 after reaching nearly 10% in May. In February 2010, the North South Pipeline from the Goulburn River was connected to the reservoir.
The Sugarloaf Sailing Club operates on the reservoir rear round. The club can be found on Ridge Road off the Eltham-Yarra Glen road. The club runs over 40 races throughout the year in three series, "Winter", "Twilight" and "Summer". There is a strong racing fraternity at Sugarloaf who can be found on the lake on race days, rain, hail or shine. New members can use the boats from the club fleet without further charges. The Club also conducts Sailability on the second Sunday of every month during the summer season. Sailability is sailing for all including the young, the elderly and disabled and uses Access dinghies which are unsinkable, uncapsizable and good fun.
Sugarloaf Reservoir is also a very popular waterway for recreational fishing. Rainbow and brown trout, redfin, roach and European carp can be caught in these waters all year round. No natural bait or berley is permitted, there are signs posted around the reservoir stating this.This is due to the reservoir being an integral component of Melbourne's domestic water supply. There have been studies conducted that suggest that the Mercury levels in the Redfin (and most likely other predatory fish in the reservoir) are higher than is regarded safe for human consumption.