K ne'ohe Bay is a Naval Defensive Sea Area established by Executive Order No. 8681 on February 14, 1941. This channel is within the prohibited area. Some of these, such as He'eia Fishpond and Waikalua-Loko , are still in use. Yet others were filled to develop as housing tracts. Shoreward of the bay's mudflats and bordering most fishponds are scattered wetland, marsh, and mangrove areas.
Fishing is one of the primary activities and encompasses all three types of uses.
Recreational activities such as boating, jet skiing, diving, snorkeling, kayaking, and water skiing are also popular in the lagoon. Consequently, its coral reefs are among the most intensively studied natural systems in the world. The security buffer around M kapu Peninsula, which prevents commercial and public recreational fishing access, represents a de facto marine refuge. The reef around Coconut Island is also a protected reserve.