Kottooly has a vast water-logged area with out-growths of mangroves in the boundaries is situated in the north-western side.

A portion of the wetland has been proposed for development of the Dream City, with a view to making it a part of Kozhikode, a tourist attraction.

The portion of the wetland, now intact, is mainly on the eastern periphery of the Eranhipalam-Arayedathupalam stretch of Canoly Canal.

Studies conducted by Center for Water Resources Development and Management (CWRDM)) and others have highlighted the efficacy of this wetland in the ecosystem of Kozhikode.

The wetland system has been subjected to degradation and loss of biodiversity owing to reclamation, pollution and human intervention, the CWRDM action plan highlights.

The activities under map envisaged mangrove afforestation, desilting, pollution abatement, weed control, fishery development, conservation of biodiversity and awareness creation among local inhabitants and city-dwellers.