The next phase in the lake's development came in 1929, when the saltwater pipes entering from Coal Harbour were shut off, turning it into a freshwater lake. The BC Fish and Game Protection Association was given permission to stock the lake with trout. The Stanley Park Flyfishing Association was formed, and charged members to fish in the lake, while the park board profited from the canoe and boat rentals. This came to an end in 1938 when the walkway around the lake was constructed and the area declared a bird sanctuary. Civic budgets were significantly reduced during the depression, but the park board benefited from the free labour of relief recipients, who were used to landscape Lost Lagoon.