A drastic level of resource degradation was revealed through a preliminary evaluation (completed in 2016) of water quality in a recreational lake in the second industrial city in Dammam, Saudi Arabia. The primary signs were a foul smell, algal bloom, high turbidity, and lack of aquatic life. This study aims to evaluate the influence of reverse osmosis (RO) on lake water quality. The recreational lake consists of two connected lakes (Lakes 1 and 2), which receive treated effluent from an industrial wastewater treatment plant. Composite samples were collected from the lakes to analyze their physiochemical parameters. Descriptive analyses were performed, and two water quality indices were developed to observe the variations in water quality conditions between the two periods (2016 and 2021). The results indicated that the water parameters of total dissolved solids (TDS), sulphate (SO42−), biological oxygen demand (BOD), and dissolved oxygen (DO) in 2016 (3356, 4100, 516, and 1.32 mg/L, respectively) were significantly improved in 2021 (2502, 1.28, 9.39, and 7.79 mg/L, respectively). The results of the water quality index (WQI) and comprehensive pollution index (CPI) indicated that the water quality in Lake 1 was significantly enhanced in 2021 (WQI = 85, CPI = 1) in comparison with assessment data from 2016 (WQI = 962, CPI = 8). However, the data from Lake 2 revealed higher pollution levels in 2021 (WQI = 1722, CPI = 18) than those recorded in 2016 (WQI = 1508, CPI = 13). As indicated by the absence of bad smells, algal blooms, and restoration of aquatic life, the RO intervention successfully improved the water quality in Lake 1. The WQI and CPI were helpful tools for evaluating lake water quality.