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This is a case of "an island in a lake on an island in a lake".

Several of the larger north Canada lakes have large islands that also have their own lakes. However, the most accessible is Manitoulin Island, Ontario, in Lake Huron. The resort island has three large lakes. A notable island is "Treasure Island" (Mindemoya) on Lake Mindemoya. The hilly island is about 1 km by 3 km.

It is unclear if Treasure Island has any lakes of its own with islands on them, but they would be quite small. This would constitute "an island in a lake, on an island in a lake, on an island in a lake".

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Q: Which Canadian place is an island?
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