The correct answer is Jammu and Kashmir. Explanation & Key Takeaways: • Anchar Lake is located in Jammu and Kashmir. • This lake is in highly deteriorated condition owing to pollution, large scale encroachment, and illegal constructions in its surroundings. • It is connected with the famous Dal Lake via the channel 'Amir Khan Nallah'. • It is located near the Soura area in the city of Srinagar. • In the 1990s, when the Nallah Mar was covered to build the Mearplan highway around the western side of Dal, six-foot pipes were laid under the new road, to allow Dal to continue to drain into the Anchar lake system, however, the pipes soon clogged due to waste and debris. • Like the Dal lake and Wular Lake, it is home to the Hanji community which live near the lake in an area called as Anchar among the locals.