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Chadinga Conservation Reserve is located in the Chadinga Dunes on the western side of Lake MacDonnell. The dunes exend up to 3 km inland and form a habitat for the spinifex hopping mouse. Another odd creature found in this reserve is the Dinosaur Ant. The lake is the largest of several salt lakes in the area - others include Red Lake (a small section of Lake MacDonnell cut off by the Penong to Point Sinclair/Cactus Beach road) and Blue Lake, a smaller lake to the south of Lake MacDonnell.