As of the censusGR2 of 2000, there were 1,135 people, 504 households, and 297 families residing in the city. The population density was 730.4/km² (1,884.2/mi²). There were 556 housing units at an average density of 357.8/km² (923.0/mi²). The racial makeup of the city was 88.72% White, 0.53% Black or African American, 5.37% Native American, 1.32% Asian, 0.09% Pacific Islander, 1.15% from other races, and 2.82% from two or more races. 2.47% of the population were Hispanic or Latino of any race.
There were 504 households out of which 27.4% had children under the age of 18 living with them, 41.9% were married couples living together, 13.7% had a female householder with no husband present, and 40.9% were non-families. 31.5% of all households were made up of individuals and 9.3% had someone living alone who was 65 years of age or older. The average household size was 2.25 and the average family size was 2.84.
In the city the population was spread out with 21.9% under the age of 18, 8.4% from 18 to 24, 29.6% from 25 to 44, 27.7% from 45 to 64, and 12.4% who were 65 years of age or older. The median age was 39 years. For every 100 females there were 93.0 males. For every 100 females age 18 and over, there were 86.9 males.
The median income for a household in the city was $32,500, and the median income for a family was $37,500. Males had a median income of $35,924 versus $25,563 for females. The per capita income for the city was $17,603. About 6.3% of families and 11.1% of the population were below the poverty line, including 13.0% of those under age 18 and 6.0% of those age 65 or over. Blue Lake has an elemenary school that is known as Blue Lake School, it has a K-8 grade level.
Blue Lake is famous internationally for a professional theatre school and theatre company. Dell'Arte International School of Physical Theatre draws students from around the world since 1975; the Dell'Arte Company tours all over the USA and abroad, and the Dell'Arte Youth Academy serves the local schools as well as a teen program. Dell'Arte's Mad River Festival takes place each summer in June and July. http://www.dellarte.com
Blue Lake's sister city is Sauve, a town of about 1200 people, in the south of France, near Nimes and Montpellier.