There are several different versions of 'Dragon Lake'.
In any version the aim is to use a rope to swing from one platform to another. If the contestants manage to land on the second platform they win the game, but if they miss, or fall off the rope, they're out.
Version one was played in the very first episode of Takeshi's Castle. The contestants had to swing from one platform to another straight in front of them, over a container of shredded paper. On the other side of the landing platform was a slope. If the contestants slid down here without, landing on the flat part of the platform first, they lost.
The game then moved to a wet, muddy pit. The landing platform this time was a small 'tree trunk'. If the contestants managed to land on this trunk they would then cross a bridge to the next game.
The third version actually included a Dragon and a lake! The contestants started off on the Dragon platform and had to swing and try and land on a small round platform in the middle of a lake.
After this the game changed slightly. Instead of swinging to a platform straight ahead, the contestants had to swing in a semi-circle to reach the small landing platform that was to the right of where they started. They also had a run-up before swinging off to give them more chance to swing far enough around.
A special version was played in the sea. Starting from very high up, the contestants had to use the rope to swing over to a small floating platform and drop down onto it. If they managed to hold on they won the game.