In ancient times, boats laden with goods used to navigate the Vellayani backwaters up to Chala.

[3][4] A geospatial study by GIS expert Vinod P. G., S. Nalinakumar, S. R. Sreeraj, Adarsh Pratap, and Mohan Pillai found that there has been a considerable reduction in the area of Vellayani Lake from 1979 to 2019.

[5] The Vellayani-Punchakkari wetlands have always been a paradise for birdwatchers with various species of migratory birds that includes Glossy ibis, spot-billed pelican, painted stork and Pacific swallow flocking to the region but, over the years, their number has dwindled.

[7][8] Illegal sand mining, pollution and land reclamation is affecting the condition of the lake.

The drinking water supply for the Vizhinjam International Seaport is operated from Vellayani Lake.