The water quality of urban lakes in India has been degraded by improper solid waste and wastewater management, lakeshore encroachment, decreased vegetation cover, reduced catchment area, increased sedimentation, and loss of interconnectivity between lakes. Residents who live close to lakes may experience health problems because of the chemicals and pathogens brought in by sewage inflow, decomposing vegetation, and dead fish brought in by algal blooms. Urban water bodies can be maintained by integrating water resource management with city administration, but this is often lacking in developing nations due to poor environmental performance and focus on housing, buildings, roads, and transportation. Research on the effects of polluted water on human health and financial costs is also lacking. City administration and governance must address challenges such as urbanization rates, fringe community effects, and the role of green spaces in controlling lake environmental quality. Addressing these issues through citizen organizations and local government will contribute to sustainable urban lake systems and a healthier ecosystem for nearby residents.