Deterioration of the general ecosystem and specifically quality of the water in Tai Lake (Ch: Taihu), the third largest freshwater in China, is of great concern. However, knowledge on status and trends of dioxin-like compounds in Tai Lake was limited. This study investigated AhR-mediated potency and quantified potential aryl hydrocarbon receptor (AhR) agonists in sediments from four regions (Meiliang Bay, Zhushan Lake, Lake Center, Corner of Zhushan Lake, and Meiliang Bay) of Tai Lake by use of the in vitro H4IIE-luc, cell-based, transactivation, reporter gene assay, and instrumental analysis. Concentrations of 2,3,7,8-tetrachlorodibenzo-p-dioxin equivalents (Bio-TEQs) in sediments ranged from less than the limit of detection to 114.5 pg/g, dry weight, which indicated that organic extracts of sediments exhibited significant AhR-mediated potencies. Results of the potency balance analysis demonstrated that acid-labile, dioxin-like compounds represented a greater proportion of concentrations of Bio-TEQs in sediments from Tai Lake. Concentrations of 2,3,7,8-tetrachlorodibenzo-p-dioxin equivalents calculated as the sum of the product of concentrations of individual congeners and their respective relative potencies (Chem-TEQs) based on polycyclic aromatic hydrocarbons and/or polychlorinated biphenyls represented no more than 10% of the total concentrations of Bio-TEQs.