The three manmade lakes of a village named Tera in Kutch district have gained significance by the declaration of being heritage village by the Government of India. But mere recognitions do not satisfactorily improve the conditions of the environmental aspects of the lake on which people are dependant for daily needs. The socio-economic and environmental survey was conducted by group of teachers and students to analyse the conditions of the villagers and to understand their opinion about developments and progress of the village with the upcoming projects. The social strata remain same as traditional living goes, whereas economic profile shows variable change due to migrations. The progressive group and deprived group tend to show friction in some course of development. Because of the human environment and the approach towards the lake is highly neglected. The water quality of lakes seems to deviate from the normal standards prescribed when the water was tested for chemical and microbiological parameters. The total dissolved solid is high and as a result it enhances increase in chlorides and hardness. Due to lack of toilet and bathroom facilities, the economically backward classes utilize lake water and discharge waste water into it directly, leading to increase in phosphates and sulphates along with infectious disease causing microbes. The laboratory analysis got supporting evidence from the survey also; where people admitted that the lake water is hard and not good for direct drinking. To achieve the target of Environmental Sustainability, it become prime important to focus the issue of development on providing basic facilities of shelter, sanitation, education and job. This can lead to proper growth in standard of living. Then the awareness of environment and conservation of culture heritage etc can be felt.