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An actor, writer, and producer, Lake was born in Toronto, Canada. He first arrived in Los Angeles to attend California Institute of the Arts, which counts John Lasseter, Ed Harris, Don Cheadle, and Tim Burton among its alumni. After graduating, Lake returned to Toronto to spend four years as part of Second City, the world-famous improvisational theater company.

During this time, he was a regular on two series for Showtime: Bizarre and Super Dave, which ran for nine years total. He eventually returned to Los Angeles and became a series regular on Bill & Ted's Excellent Adventures, The Building, and The Bonnie Hunt Show.

Feature film work has included roles in Terminator 2: Judgment Day, Hot Shots!, Rocket Man, Wagons East, and Super Mario Bros. Lake also appeared in and co-wrote the film Return to Me with Bonnie Hunt. He had a two-year run as co-creator and executive producer of Life With Bonnie and also appeared as a series regular on Watching Ellie with Julia Louis-Dreyfus.

Lake continued his improvisational work in four previous Christopher Guest films: Waiting for Guffman, Best in Show, A Mighty Wind, and Almost Heroes.

Most recently, he and writing partner Bonnie Hunt have worked on the screenplays for the animated Pixar feature Cars and the Mrs. Doubtfire sequel.