Dunalastair water is an artificial body of water, within the Dunalastair Estate, created by the damming of the River Tummel further down stream. It is very shallow and surrounded by marshes and as a result is a superb habitat for aquatic insects, fish and birds.
In winter it is home to greylag geese, Whooper swans, goldeneye ducks, gooseanders, mallards and the occasional smew.
At other times of the year there are ospreys and herons fishing and kingfishers have been seen. Dippers and Common sandpipers nest on the shores. Red and roe deer are also frequent around the perimeter. At the west end at West Tempar there is a creek which encloses an island thus providing an undisguised habitat for wildlife.
Mammals include otters and beavers.
The path to MacGregor’s Cave runs along the south eastern shore to where Bridge Cottage is to be found. Here there was once a footbridge but it has collapsed into the river and only the steel girders can be seen projecting from the water in one place. In earlier times the bridge was one that vehicles could cross but it was modified by the army to turn it into a foot bridge. Eventually the footings failed allowing the girders to fall into the river.