We are looking to rent a house on a lake in Maine for a week in August. Family of 4 with two Teenagers. Would like a nice house on the water. Would like a town nearby with some restaurants/maybe art galleries. There are so many lakes and regions. Any suggestions on where to focus?

i personally love the greenville/moosehead lake region. not a large town but has numerous restaurants. not so sure about any art galleries. if you are using vrbo or ?? check listings in the rockwood area too.
another option is the sebago lake region. much closer to portland which would have some galleries.
both areas book early so i'd get right on this.

One of my cousins has a house in Maine, on a lake. I haven't been there, so I can't really answer any questions about it.

Here is the website to "Swan Lake Cottage":

http://www.swanlakecottage.com/

i can't vouch for the above house or the lake but the location near belfast would be ok. belfast is a very cool town with lots of places to eat and a few galleries. you would be close enough to the coast to spend a day exploring there too.

RF,
From where are you coming and how long of a drive will you allow? Some of the places mentioned here like greenville/moosehead and Belfast are quite a drive from anywhere.