The Wular Lake is a huge absorption basin for the yearly floodwaters in the state of Jammu and Kashmir.

In this way, it plays an important role regarding the hydrographic system of the Kashmir valley. It is one of the biggest freshwater lakes in Asia.

The Wular Lake is surrounded by huge marshes, which along with the lake is vital towards maintaining wildlife. This lake makes up almost 60 percent of the fish production in the state.

The lake has a catchment region where there are orchards, alpine pastures and impressive coniferous forests. These enhance the biodiversity and natural beauty of the wetland area.

Considering the socio-economic, hydrological and biological importance, the Wular Lake became a part of the Wetland for National Importance program in 1986. Such a program is run by the Ministry of Environment and Forests, Government of India for management and conservation aims.

Further in 1990, under the Ramsar Convention, this lake was included in the Wetland of International Importance.