Axolotls are found exclusively in the wild in the freshwater lakes and canals of Mexico, primarily in Lake Xochimilco in the Valley of Mexico. Historically, they also inhabited Lake Chalco and Lake Texcoco, but these lakes have been largely drained or destroyed due to urbanization and flood control measures. Today, Lake Xochimilco remains the main natural habitat, though it is now mostly a network of canals rather than a large lake

. The axolotl's habitat is unique as it is a high-altitude, cold freshwater environment, with water temperatures rarely rising above 20°C (68°F). The species is critically endangered in the wild due to habitat loss, pollution, and competition/predation from invasive species such as tilapia and carp. The wild population is estimated to be fewer than 1,000 individuals, and sightings in the wild have become very rare

. In summary, wild axolotls are found only in Lake Xochimilco and its canals near Mexico City, with their former habitats in nearby lakes mostly lost to human activity