The present study is undertaken to evaluate the impact of aeration units on the physicochemical characteristics of Upper Lake situated in Bhopal. The lake receives a large amount of sewage from its densely populated habitation. The continuous input of biologically active nutrients (phosphates and nitrates) through inflow of sewage has changes the water body into eutrophic lake resulting frequent oxygen depletion. The installation of aeration units have been found to have significant in increasing the oxygen concentrations, changing the species diversity besides reducing the pathogenic microbial population.