A draft Lake Activation Strategy was endorsed for exhibition at Monday's council meeting.

One of the major features of the strategy is the investigation of new enclosed swimming baths for the western side of the lake, which came as a result of public feedback and the growing popularity of the recently refurbished Belmont Baths.

Rathmines, Toronto and the Morisset Peninsula are among the potential sites set to be explored.

"Further investigation is needed, but baths on the western side of the lake will serve thousands of residents, from Bolton Point to the city's south-western border," council's manager asset management Helen Plummer said.

But councillor Wendy Harrison questioned whether this was in conflict with one of the plan's other actions - "to develop and implement an estuary health monitoring program at key aquatic and foreshore recreation sites.

"The impacts of swimming especially within enclosures on seagrass and rare lake species needs to have ongoing assessment," she said.

"I remember from when the Belmont Baths were being decided, and it's been very successful I know that, but prior to this staff weren't recommending, other than that particular time, that the enclosed baths be replaced because of the environmental issues. Are things changing? How are the Belmont Baths responding to these environmental issues that have been identified?"

Staff said multiple locations had been identified for enclosed facilities so environmental factors could be taken into account in planning.

"There's obviously areas of the lake that have better water quality for swimming and also have different environmental considerations in regards to seagrass and those type of things and that's why we have put a couple of locations that we would like to investigate to determine the better location for this type of facility."

The plan also includes the introduction of a new expressions of interest process to issue leases to tourism businesses to activate council land around the lake, and installing infrastructure such as power, water and lighting in foreshore reserves to support waterfront festivals and events.

The draft strategy follows six months of community consultation, where residents and visitors were asked to provide feedback about facilities and services for lake-based recreation, barriers to lake activation and areas for improvement.

Residents can provide feedback at shape.lakemac.com.au until July 26.

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