Chamundi hill has a prominent influence on the ecology and the local climate of the city of Mysore. The hill also acts as a repository of biodiversity and serves as a watershed. The role of the hill in groundwater recharging was well recognized by the Maharajas of Mysore, who developed lakes (including Karanji Lake, Devikere Lake, Dalvoy lake and Lingambudhi Lake), tanks and ponds around the hill. These water bodies once served as the main water source to most of the villages around Chamundi.
But in recent times, the hill and its ecosystem have come under extreme pressure due to rapid urbanization and land encroachment. Many unauthorized structures, including large residential layouts have developed around the hill. This has greatly deteriorated the general environment of the city.