In February 2007 the Municipality of Phnom Penh entered into a 99-year lease agreement for US$79 million for 133 hectares, including Boeung Kok lake and surrounding land, with a private developer, Shukaku Inc, owned by a ruling party senator. According to the government, the company will turn the area into "pleasant, trade, and service places for domestic and international tourists," including by filling in 90% of the lake.

On 26 August 2008 a company began filling the lake, which has worsened flooding and caused the destruction of some houses. The development will lead to the eviction of almost 4,000 families, despite many of the affected families having strong legal claims to the land under the Land Law.