The lake is the 11th largest fresh water lake in the world. There are numerous seasonal and permanent cottage and beach communities along the south basin and it supports a $40 million annual fishery.
In the summer of 1974, approximately 100 km (62 miles) of dikes were built by the Manitoba government and local communities in response to the threat of high Lake Winnipeg levels.
In 2005, in response to lake levels that were the highest since 1974, several local governments declared states of local emergency. They asked the Manitoba government to help finance the construction of dikes along Lake Winnipeg, to protect against high lake levels and windstorms. Between 2005 and 2007, the Manitoba government invested $12 million to build 50 km (31 miles) of dikes.
The massive storm (also known as a weather bomb) on October 27, 2010 significantly damaged parts of these dikes and caused some flooding and property damage along the south basin of Lake Winnipeg. A Disaster Financial Assistance (DFA) program has been established to help with the repair costs of storm damage to residential properties and municipal structures.
Additional flood protection along the lake includes the Gimli diversion, which was completed in 1995. The diversion channels take spring melt waters away from the Town of Gimli and the residential and industrial park in the RM of Gimli, including
Loni and South Beaches.
The lake also serves as a reservoir for Manitoba Hydro. The outlet from the lake into the Nelson River and hydro-generating dams has been wide open since July of 2010 to help manage lake levels. Manitoba Hydro has improved the outlet channel capacity by 50 per cent, building 13 km (8 miles) and 3.2 km (2 miles) channel to reduce flood damage to properties around Lake Winnipeg. For more information see www.gov.mb.ca/waterstewardship/licensing/lake_wpg_regulation.html.