By the 1980s sedimentation had shrunk the reservoir by 11 acres (4.5 ha) and agricultural pollutants in surface runoff had reduced the water quality.

Various government and community organizations began working with neighboring landowners to improve Lake Ahquabi.

In the mid-1990s the lake was extensively dredged, the shoreline stabilized, the dam improved, and an aeration device installed.

Game fish like largemouth bass, bluegill, sunfish, channel catfish, and crappie were stocked.

After restoration Lake Ahquabi State Park's annual visitation and fishing use each increased three-fold.

[5] It has been estimated that the money brought into the local economy by increased visitation equalled the $4 million spent on the restoration project within 2 years.

Circling Lake Ahquabi is a gravel trail which in winter is open to snowmobiling and cross-country skiing.