Ecosystem level changes in water quality and biotic communities in aquatic bodies of coastal lagoon have been associated with intensification of anthropogenic pressure. In light of incipient changes in Chilika lake, examination of different dissolved nutrients distribution and phytoplankton biomass was conducted. The effects of water soluble wastes containing NO2-, NO3- , P043-, NH4+ and Na+ on eutrophication behavior of Chilika lake have been investigated by following standard procedures. From the evaluation parameters it was found that Nitrogen is introduced into the aquatic environment through the discharge of domestic sewage and organic industrial waste. The discharge of excessive quantities of nitrogenous compounds into rivers and lakes resulted excessive growth of algae and macrophytic plants. This phenomenon which is known as eutrophication, resulted algae death and were degraded by decay organisms, which used dissolved oxygen in the process. Thereby, the destabilization of aquaculture environment is established.