Looking for the perfect home or cottage in Muskoka? Lake of Bays Township is located in the northeast corner of Muskoka, and is home to the second largest lake in the Muskoka Region, Lake of Bays.  Comprised of the villages of Dwight, Dorset, Baysville, Hillside & Oxtongue Lake collectively, Lake of Bays has many luxury cottages and homes for sale.