Yes, people live by the Great Salt Lake. Salt Lake City and its northern and western suburbs are right near it. I live in West Jordan, another suburb of Salt Lake to southwest. Occasionally the lake does smell if the conditions are right. It smells like you would expect a body of water with no outlet to smell: kind of rotten. read more
According to the Great Salt Lake Ecosystem Project, the hyper-saline environment of the Great Salt Lake is what makes it smell. read more