The interesting rock formations that make Mono Lake unique are called "tufa." Tufa is essentially common limestone. What is uncommon about this limestone is the way it forms. Typically, underwater springs rich in calcium mix with lake water rich in carbonates. As the calcium comes in contact with carbonates in the lake, a chemical reaction occurs resulting in calcium carbonate—limestone. The calcium carbonate precipitates around the spring, and over the course of decades to centuries, a tufa tower will grow. Tufa towers grow exclusively underwater, and some grow to heights of over 30 feet. The reason tufa is visible around Mono Lake is because the lake level fell dramatically after water diversions began in 1941.

In 1994, the California Water Board set permanent stream flows for Mono Basin streams and a lake level of 6,392 feet to protect Mono Lake's public trust values, as ordered by the California Supreme Court. The lake elevation afforded by the decision is still 25 feet below Mono Lake's pre-diversion level of 6,417 feet, but is expected to restore many lost public trust values and prevent future degradation of resources.