In 1998, the Hamlin County Conservation District became the sponsor of the Lake Poinsett Watershed Project, an EPA 319 program. Lake Poinsett had been identified as having impaired water quality through an earlier assessment program. To fulfill the requirements for being a sponsor the Hamlin County Conservation District was required to contact additional state and local agencies and organizations for financial support and technical assistance. The project is based on implementing best management practices to prevent sediment and nutrients from entering the surface waters associated with Lake Poinsett.

The Lake Poinsett Watershed Project identified areas of shoreline on Lake Poinsett that were undergoing severe erosion from elevated water levels. Lakeshore homeowners had been struggling to protect both the lake and their property from the erosion that was occurring. No other agency had been available to help them with either technical assistance for measures to stabilize their shoreline or offer any financial help with the same. The Lake Poinsett Project promoted technical procedures adopted from USDA/ NRCS for shoreline stabilization and also established guidelines to prioritize the sites for cost-share work. A 50% cost-share plan was developed which was readily accepted by homeowners. To date over $450,000 have been spent with approximately half of the funds coming from EPA, Consolidated Water Program and Lake Poinsett Water Project District. As of the summer of 2003 over 12,000 feet of shoreline will have been stabilized to protect the water quality of Lake Poinsett. This project has addressed nearly all the severely eroded shoreline of Lake Poinsett and the stabilization effort is directly responsible for the increased economic development on Lake Poinsett. Shoreline lots have tripled in value and lake use has risen.