Lakes and wetlands play a crucial role in maintaining the ecological balance. They are sinks for incoming contaminants and recycle and maintain the impaired conditions. These fragile ecosystems are threatened due to rapid urbanisation and industrialisation. A co-ordinated and quick action is needed to restore and preserve them. Failure to do so will cost mankind dear in that it will indirectly support the extinction of species and permanent ecological damage. Restoration helps in restructuring and recreating the ecosystem to its former pure state. Restoration of lakes and wetlands is viewed in the watershed context. The major hurdle in watershed restoration is institutional and educational. Effective restoration can be achieved through collaboration among scientists, economists, administrators, policy makers and local people.