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Lost Canoe features a mosaic of natural community types including old-growth mesic forest, northern dry-mesic forest, poor fen, and undeveloped seepage lake. Situated on a 25-acre island in a conifer swamp of black spruce, balsam fir, and tamarack is an old-growth hemlock forest on the southeast shore of Escanaba Lake. Some large white pines were removed long ago but there is no evidence of other disturbance. Hemlock is dominant with little or no reproduction due to large deer populations and possibly heavy shading. Other canopy species are yellow birch, paper birch, and occasional white pine. The understory and groundlayer are depauperate and composed only of scattered balsam fir, pipsissewa, large leaved aster, snowberry, partridge berry, and club-mosses. On the isthmus between Lost Canoe, Pallette, and Escanaba Lakes is a mature hardwood forest dominated by medium-sized red oak, paper birch, and big-tooth aspen. Associated species include white pine, basswood, ironwood, balsam fir, and red maple. Saplings are primarily sugar maple, balsam fir, and occasionally white pine and oak. The moderately dense shrub layer is composed of beaked hazelnut with American fly honeysuckle, and maple-leaved viburnum. Characteristic low shrubs and herbs include early low blueberry, wood anemone, wild sarsaparilla, intermediate wood fern, and grass-leaved ricegrass. Two extensive sedge meadows occur along the upper stretches and headwaters of Stevenson Creek. The easternmost meadow (poor fen) is dominated by Carex lasiocarpa with white beak rush, pitcher plant, marsh fern, and St. John's-wort. Boggier patches with sphagnum, bog rosemary, and leather-leaf are also present. Beds of wild rice, bur-reeds, floating-leaved pondweed, ribbon-leaf pondweed, and yellow water-lily are found in the creek outlets and springs. The 173-acre Pallette Lake is a deep (65 feet) seepage lake with exceptionally clear water. Birds using the lake and surrounding wetlands include bald eagle, sedge wren, northern harrier, and American black duck. Forest avifauna are broad-winged hawk, least flycatcher, great-crested flycatcher, scarlet tanager, ovenbird, yellow-throated vireo, white-breasted nuthatch, pileated woodpecker, black-throated green warbler, and pine warbler. Lost Canoe is owned by the DNR and was first designated as Escanaba Lake Hemlocks State Natural Area in 1973. The boundary was later expanded in 2007.
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