The Ashtamudi lake has a unique wetland ecosystem and a large palm-shaped (also known as an octopus-shaped) body of water, second only to the state's Vembanad estuary ecosystem. Coconut groves and palm trees can be found on both banks of the lake, dotted with towns and villages. Kollam (formerly Quilon) is an important historic port city on the right bank of the lake. Boat trips are run by the Kollam Boat Club from Kollam to Alappuzha, providing transportation to many other towns and villages along this route. Luxury houseboats also operate on the lake. A boat trip is an eight-hour journey through a village surrounded by lakes, canals, and water. Chinese fishing nets are used by local fishermen and are often found along waterways. Its main businesses are fishing, coconut shell roasting for coconut fiber production, and inland transportation services. Lake serves as the livelihood of many people living nearby.