Parker Canyon Lake is located in southeastern Arizona, 28 miles southwest of Sierra Vista around the Huachuca Mountains and about 5 miles north of the border with Mexico. The lake is a reservoir formed by a dam in Parker Canyon in the south end of the Canelo Hills in southwestern Cochise County. Parker Canyon is a tributary to the Santa Cruz Rive…Parker Canyon Lake is located in southeastern Arizona, 28 miles southwest of Sierra Vista around the Huachuca Mountains and about 5 miles north of the border with Mexico. The lake is a reservoir formed by a dam in Parker Canyon in the south end of the Canelo Hills in southwestern Cochise County. Parker Canyon is a tributary to the Santa Cruz River in the San Rafael Valley. The facilities are maintained by Coronado National Forest division of the USDA Forest Service.