A moderately psychrophilic bacterium Corynebacterium paurometabolum MTCC 6841 ( gram positive, short rod type) producing extracellular alkaline lipase was isolated from Lake Naukuchiatal, Uttaranchal, India. The bacterium was able to grow within a broad range of pH ( 5 -10). Soyabean oil and olive oil served as the best carbon sources for lipase production. The bacterium preferred inorganic nitrogenous compounds, NaNO3 and KNO3, over organic nitrogenous compound for its growth. Maximum lipase production occurred at 25 degrees C and 8.5 pH. The enzyme activity was found to be maximum at the same values of temperature and pH. The enzyme was reasonably stable in the presence of various organic solvents. No significant effect of Ca+, Cu++, Fe++, Na+, K+, Mg++, Mn+, NH4(+), Co++ ions over enzyme activity was detected. Treatment with EDTA reduced the activity to nearly one half.