The research analyzed social and economic development around Chao Lake as well as changes of water quality in Chao Lake and explored the relation- ships of local population and GDP with water chemical oxygen demand (COD), total phosphorus (TP), total nitrogen (TN), chlorophyll and eutrophication index. The re- sults showed that population around Chao Lake and GDP kept growing from 2001 to 2013, and water quality was improving. In addition, correlation analysis indicated that except of water eutrophication, GDP and population showed inverse correlation with other indices, demonstrating that water quality has been effectively controlled in Chao Lake recently.