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Blue Lagoon is an anime location in Pokémon: Master Quest.
A Long time prior to the series, it was an underwater location, but geographical forces shaped it into a landlocked location. The Blue Lagoon first appeared in Takin’ It On the Chinchou, where Ash,Misty and Brock arrived at it by cable car. They later decided to look around it, and found a Chinchou which Misty tried to catch, but it was revealed that it was already caught by Dayton, who later explained the area to ash and co before participating in a Chinchou Parade.
So far, only Chinchou live in the nearby lake,where they nest.
Parade of the Chinchou
This parade is celebrated the migration of newly hatched Chinchou to the ocean, where the locals don blue clothes with motif of Chinchou and gather to watch the parade.Chinchou based merchandise is also sold.
Yearly,a special person is appointed to lead the parade, which was Dayton in the episode,which ash and co followed as they heard it will take them to bluefinland,shutting down team rockets efforts to interrupt it along the way.