Balsam Lake is a village in, and the county seat of Polk County, Wisconsin, United States. The population was 1,009 at the 2010 census. The village is located within the Town of Balsam Lake. The area in and around Balsam Lake was originally inhabited by a large band of Chippewa Indians. They referred to the area as "Innenehinduc," which means "…Balsam Lake is a village in, and the county seat of Polk County, Wisconsin, United States. The population was 1,009 at the 2010 census. The village is located within the Town of Balsam Lake. The area in and around Balsam Lake was originally inhabited by a large band of Chippewa Indians. They referred to the area as "Innenehinduc," which means "place of the evergreen." This may have been due to the large amount of Canadian Yew, an evergreen shrub, which grew in abundance there.