Taal Lake is situated in a highly populated and rapidly growing agricultural and industrial region. The Philippine Government has designated the Taal region as a favored site for setting up new industries and infrastructures. The whole region surrounding Lake Taal is at considerable volcanic risk.
Overfishing is one of the biggest problems as well as the pollution of the lake through waste water from the industry and households. Unsustainable development presents also a very real threat to the lake.
Taal Lake is home to a venomous black and white "sea snake" (Hydrophis semperi). This species is one of only a few snakes of its type that breeds in freshwater. Taal Lake is also habitat of world''s only freshwater sardine, Sardinella tawilis. The bleniid Omobranchus ferox is also endemic to Lake Taal.