Lake Tuggeranong foreshore development has been welcomed by the community council, who say amenity upgrades can't replace a healthy waterway.
Lake users have been invited to have their say on what the foreshore needs, which could include more trees, bins and seating, playgrounds and a skate park.
Tuggeranong Community Council vice-president Glenys Patulny said a recent youth survey found 90 per cent of young people were concerned about water quality.
"People love the lake, but at certain times of year the smell is dreadful," she said.
"We have people complaining about the smell from Wanniassa, the next suburb."
Waterwatch recently reported the lake was in the worst state it had ever found it, despite record rainfall largely improving water quality for the region.
Blue-green algae was detected in the lake in 2021 and a high phosphorus reading was detected in the reach fed by Lake Tuggeranong in February.
An ACT government spokesman said water quality tests recently found water exiting a gross pollution trap below the Village Creek stormwater outlet was worse than water entering it.
"This is most likely due to the breakdown of organic matter accumulated in the GPT [Gross Pollution Trap]," the spokesman said.
He said the government had funded modification to the trap to fix the problem and the placement of a floating wetland near the drain to absorb nutrients.
Ms Patulny, a Tuggeranong Lake Carers convenor, said infrastructure designed to filter the stormwater was having the opposite effect.
"The stuff is coming in through the drains and settling in that pool of water and stewing," she said.
"What's going into the lake is worse than what's coming out of the drain."
ACT government has proposed improved street furniture and landscaping, a new or upgraded playground, recreation facilities and accessibility improvements on the foreshore, as part of its Suburban Infrastructure Program.
The community council youth survey found people felt unsafe by the lake of an evening due to a lack of street lights.
Ms Patulny said there were also two sharp corners created by the new laneway to the lake from South Point and they were dangerous to cyclists and pedestrians.
She said improving safety was crucial as was improving the health of the lake.
"Lake Tuggeranong has been closed every year for swimming since 2002, that's 20 years of not being able to swim in the lake in summer," she said.
"The triathlon - which is a three lakes triathlon - often have to have their swim in the Tuggeranong swimming pool."
City Services Minister Chris Steel said Canberrans' input would inform the designs of the foreshore.
The government is also looking at a new recreation park at the other end of the city, in Casey.
Mr Steel said the draft plan for the park in Casey included a barbecue area and picnic facilities a new basketball court and space for a community garden.
"We've already kicked off consultation on better local shopping centres and the design and location of four upgraded playgrounds. Together with these projects in Casey and Tuggeranong that means the community can soon look forward to better local facilities north and south," said Mr Steel said.
Opposition member for Brindabella Nicole Lawder said parking was a major issue around the lake, especially with more units being built without proper parking plans.
"It has been a while since we have had anything done on the Lake Tuggeranong foreshore despite the minister regularly announcing the impending upgrades," Ms Lawder said.
"Residents are certainly eager for works to begin."
