Nitrogen and P fluxes, transformations and water quality functions of Lake Verret (a coastal Louisiana freshwater lake), were quantified. Ortho‐P, total‐P, NH4+‐N NO3 ‐N and TKN in surface water collected from streams feeding Lake Verret averaged 104, 340, 59, 185, and 1,060 mg 1−1, respectively. Lake Verret surface water concentrations of ortho‐P, total‐P, NH+‐N, NO3−‐N and TKN averaged 66, 191, 36, 66, and 1,292 μg 1−1. The higher N and P concentrations were located in areas of the lake receiving drainage. Nitrification and denitrification processes were significant in removing appreciable inorganic N from the system. In situ denitrification rates determined from acetylene inhibition techniques show the lake removes 560 mg N m−2 yr−1. Laboratory investigations using sediment receiving 450 μg NH+4‐N (N‐15 labeled) showed that the lake has the potential to remove up to 12.8 g N m−2 yr−1. Equilibrium studies of P exchanges between the sediment and water column established the potential or adsorption capacity of bottom sediment in removing P from the overlying water. Lake Verret sediment was found to adsorb P from the water column at concentrations above 50 μg P 1−1 and the adsorption rates were as great as 300 μg P cm−2 day−1 Using the 137C s dating techniques, approximately 18 g N m−2 yr−1 and 1.2 g P m−2 yr−1 were removed from the system via sedimentation. Presently elevated nutrient levels are found only in the upper reaches of the lake receiving nutrient input from runoff from streams draining adjacent agricultural areas. Nitrification, denitrification, and adsorption processes at the sediment water interface over a relatively short distance reduces the N and P levels in the water column. However, if the lake receives additional nutrient loading, elevated levels will likely cover a larger portion of the lake, further reducing water quality in the lake.