Lake Van, the largest in Turkey and fourth largest in the world is situated in a closed basin. The water level in Lake Van has increased by about four metres since the mid sixties causing serious environmental damage. It is known that this problem does not only pertain to Eastern Anatolia, but changes in water levels of lakes in Iran and Azerbaijan are also being observed. Thus, the problem seems to be regional rather than local. Research was conducted in order to evaluate the existing physical features of the Van Basin and to develop a proposal for allocation of the Van residents which are under flood threat. This paper presents the general features of the basin associated with water fluctuations and evaluates the settlement condition relative to the change in the lake water level.