Lake Phewa was slightly enlarged by damming. It is in danger of silting up because of the inflow during the monsoon. The outflowing water is partially used for hydro power. The dam collapsed in the late 1970s and has been rebuilt. The power plant is located about 100 m below at the bottom of the Phusre Khola gorge. Water is also diverted for irrigation into the southern Pokhara valley.
The eastern Pokhara Valley receives irrigation water through a canal running from a reservoir by the Seti in the north of the city. Phewa lake is also used for commercial fishing. The tourist area is along the north shore of the lake (Baidam, Lakeside and Damside). It is mainly made up of little shops, little hotels, restaurants and bars. The larger hotels can be found on the southern and south-eastern fringes of the city, from where the view of the mountains is best. To the east of the valley, in Lekhnath, are several smaller lakes, the largest being Begnas Tal and Rupa Tal. Begnas Tal is also known for its fishery projects. There are no beaches in the valley, but one can rent boats in Phewa and Begnas Tal.
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