Well, first off there is no swimming or water skiing there (since it provides drinking water), so those activities are off the list. However, you can still go boating and fishing there (so long as you don't touch the water overly much, meaning no wading in too deep). Kayaking there would definitely be fun to do for beginners (it is a calm lake, so no real worries about waves flipping you). You can hike around the lake, and there is a picnic there too (you may only make charcoal fires in the designated areas though). It sounds like a very nice place, but seeing as it is a watershed/city water supply, you will definitely want to read all the rules before going.
Source(s):
http://www.manchesternh.gov/website/Departments/WaterWorks/Rules/tabid/428/...
http://en.wikipedia.org/wiki/Lake_Massabesic
http://www.trails.com/trailphotos.aspx?trailid=HGN204-003

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