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There is a scary movie where a daughter comes home from being in a crazy house or something for a long time and the movie goes on and they live by a lake and something happened.

At the end of the movie she finds out that she has actually been dead the whole time.

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I believe you are talking about the movie "The Uninvited".

The main character Anna: enter image description here

In it, the main character, Anna, is in a mental institution after a suicide attempt, following the death of her mother in a fire. When she returns home, she reunites with her sister Alex and her father, and some strange deaths occur, which the girls are convinced are related to their father's new girlfriend, Rachel.In one of the deaths, the body is pulled from the water (Their home is located on the New England coast.)

Ending spoiler:

Alex actually died in the fire that killed her mother, and it is Anna that has been committing all the murders, and she realizes it just when they come to arrest her and take her back to the institution.

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Although the plot mentioned question is a bit off the actual storyline, the movie you're looking for could be 'The Uninvited' as JohnP has mentioned in his answer.

The Korean original: A Tale of Two Sisters (2003) is worth a watch too.

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Hello and welcome to Movies & TV. Whilst either of these answers could be correct, it is far more helpful to explain WHY you think they are correct. Additionally, someone has already suggested The Uninvited, with references, so including it again adds nothing. For more information on answering questions, take the Tour under the Help menu. – Andrew Martin Mar 20 '14 at 9:57
Thanks, Andrew. Noted. – thinkdj Mar 20 '14 at 11:20

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