The channel was constructed between December 2009 and February 2010 without a license as required through Manitoba’s Environment Act. It affects crown lands and waters, and was constructed by a private land owner.

Concern about the environmental impacts of the project as well as the retroactive nature of the permitting, with no apparent consequences, caused serious concerns among local residents and others. The local residents lodged complaints and banded together to form the Eastern Beaches Conservation Coalition (EBCC).

Following these complaints Manitoba Water Stewardship issued a stop work order on the project in March of 2010 until an Environmental Assessment could be completed. An Environment Act Proposal was filed in late October and comments were accepted until November 22, 2010.

Manitoba Wildlands, and numerous others, submitted comments asking EALB: "...not to license this project, and to issue an order for remediation and restoration of the lagoon."