Phytoplankton biodiversity and water quality of famous lake, Anchar Lake, Srinagar (Lat 34° 20΄- 34° 36΄N. 74° 82΄ - 74° 85΄E Long.), Kashmir were examined in the study. During the study period (June 2010 to May, 2011), phytoplankton composition and physico-chemical characteristics of water are indicative of eutrophic condition in three different collection zones (ZA, ZB and ZC) of the lake. The species richness displayed fair variety of algal species (86 taxa). The community was dominated by the members of Bacillariophycea, Chlorophyceae and Cyanophyceae. Highest phytoplankton density (2082 individual/ L) and species diversity (0.928-2.628) was found during the summer season in the area (ZA) where there was anthropogenic activity. The area with maximum disturbance in water column (ZC) showed a minimum phytoplankton density of (164/L) and species diversity (0.991-2.319). Phytoplankton densities have significantly positive correlation with chloride (r= 0.707, significant at 0.05 level) and significantly negative correlation with DO (r= -0.449, significant at 0.05) in ZA and significantly positive correlation with Total alkalinity (r=0.728, significant at 0.01 level) and calcium hardness (r= 0.672, significant at 0.05 level) in ZB.
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