They were Northmen and their ancestors were related to the Edain. They traded with Erebor and Dale, and with the Woodland Realm of Mirkwood. Their life was affected with the arrival of the dragon Smaug who destroyed both Erebor and Dale. However as the years passed, Smaug was forgotten and children even doubted about his existence or the tales of older men who sometimes had seen him flying.
The town's prosperity was built on trade between the Men, Elves of Mirkwood and Dwarves of Erebor. It supplied food and drink to the Elves and the products of Erebor and Dale were funneled through it.
As a trading people, the Lake-men knew the Common Speech, Westron. However, amongst themselves they spoke an ancient form of it, Dalian, loosely related to but distinct from Rohirric (and other languages of the Northmen).
 See also