Axolotls are native to freshwater environments in Mexico, specifically found only in Lake Xochimilco and Lake Chalco in the Valley of Mexico, near Mexico City

. Historically, they also inhabited the larger Lake Texcoco and interconnected lakes in the Mexican highlands

. Due to urbanization, pollution, and invasive species, their natural habitat has been largely destroyed, and wild populations have drastically declined, making axolotls critically endangered

. Today, they are rarely seen in the wild but are maintained in captivity and conservation efforts focus on protecting and restoring their habitat in Lake Xochimilco