Now the latest initiative will involve floating a wetland on the lake in order to boost water quality.

More than 500 square metres of floating wetlands have been installed at one of the inlets to the lake in Greenway.

It's hoped nutrients flowing into the lake will be absorbed by the wetland plants, rather than sitting in the lake and turning into blue-green algae.

ACT Healthy Waterways program manager Ralph Ogden said the wetlands were placed in one of the main hotspots for algal blooms in the lake.

"These floating wetlands will compete for life with the algae, and hopefully this will suppress the algae," Mr Ogden said.

"We're going to have to try a number of things. There is no single solution, but this will be part of it."

The initiative is the first time floating wetlands have been used in the ACT, but they have been used to great success in other parts of Australia such as the Gold Coast, as well as overseas.

The wetlands, which includes plants such as rushes, are floated on recycled plastic that have a UV coating that stops it from breaking down in the water.

The floating structures have been secured with cables to the nearby shore to stop the wetlands from drifting away.

ACT Water Minister Shane Rattenbury said the $270,000 initiative will be in place for two years.

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"We'll monitor how they perform and how they hold up over time," Mr Rattenbury said.

"We won't see an instant fix, but there will be a steady improvement in water quality in Lake Tuggeranong.

"We want to be able to see people out on the lake and swimming in it, and that's what we want to achieve."

Extreme blue-green algae alerts have been issued for Lake Tuggeranong in recent weeks, with activities such as swimming and diving banned.

Warnings were also issued to pet owners to not let their dogs near the water due to the high levels of algae.

Mr Rattenbury said the new wetlands would come into their own over time.

"The people who walk past here regularly will see some rapid growth, and that's the expectation," he said.

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