Lake Oussudu, which is the largest wetland in the Union Territory of Pondicherry, is one of the most important bird sanctuaries in India. Apart from being an important water resource and a heritage site, Oussudu watershed also caters to the other needs of the people living around the lake; notably fishing, grazing of the domestic livestock and harvesting of reeds. But this utilisation is now increasing rapidly with the increase in demographic pressure in the lake watershed. It is now feared that if this trend is not checked, the hitherto sustainable utilisation of Oussudu may soon turn to exploitation and then over-exploitation. In this context, a socio economic study on Oussudu has been done to assess the human interaction with the lake and its likely implications.