Complex sentence: The lake is located south of the City of Peterborough and the Kawartha lakes (Ontario) and north of Cobourg and is part of the Trent-Severn Waterway, which flows into the lake by the Otonabee and out via the Trent.
Split into simpler sentences: The lake is located south of the city of Peterborough, and the Kawartha Lakes and north of Cobourg. It is part of the Trent-Severn Waterway, which flows into the lake by the Otonabee and out via the Trent.