Water resources around the world are facing serious threats attributable to various natural and anthropogenic activities. Civil societies around the world, including India, are facing increasing difficulty in the allocation and sustainable use of their available water resources. Many lakes and rivers, the major surface water sources in India, are highly polluted and on the verge of depletion. Accordingly, there is a growing interest in protecting the ecosystem services provided by the lakes and rivers using several management approaches for lake rejuvenation and conservation. A similar study focusing on water supply situation and its restoration was performed in Nainital, a major hill town located in the state of Uttarakhand. The lake water level has been declining in recent years, raising serious concerns. To address this issue, a plan has been developed to address the decreasing lake level and conserving this vital water supply source for the town. The present study provides an integrated framework enabling conservation practitioners to strategically implement water conservation actions to balance both the ecosystem and societal water needs.