Claim: Mexico City is located in Mexico.

Lake Texcoco -LRB- Lago de Texcoco -RRB- was a natural lake within the Anáhuac or Valley of Mexico . Lake Texcoco is best known as where the Aztecs built the city of Tenochtitlan , which was located on an island within the lake . After the Spanish conquest of the Aztec Empire , efforts to control flooding by the Spanish led to most of the lake being drained . The entire lake basin is now almost completely occupied by Mexico City , the capital of the present-day nation of Mexico .