Kaftar Lake is a high-altitude fresh water lake located in High Zagros, south of Iran. Despite the high annual evaporation to precipitation ratio in the area, lake water electrical conductivity is usually lower than 1000 µS/cm, this may be due to high seepage from the floor of the lake. Therefore, the hypothesis of possible underground connections between Namdan Basin, where the lake is located, and the surrounding basins with lower elevation (Aspas and Dehbid Basins) was investigated. Hydrogeology, hydrochemistry, and stable isotopes data of the lake and surrounding basins along with the lake water balance study were applied to test the hypothesis. Results indicate that Kaftar Lake has no connection with Aspas Basin in south, but it is hydraulically connected to Dehbid Basin. In Dehbid Basin, “Ghasr_e_Yaghoob spring” (average discharge ≅1200 L/s) emerges from a small outcrop (about 0.8 km2) of Daryan limestone Formation, where this outcrop is much smaller than the required recharge area for such average discharge rate. The study shows that this spring is recharged by Kaftar Lake and Namdan Basin aquifer, through Daryan Formation of Gandboee Syncline located to the northern part of the lake.