Madam Veronica Antwi-Adjei, the District Chief Executive (DCE), warned of the arrest and prosecution of anyone who breaks the order.
The hills surrounding the lake, situated within an ancient meteorite crater, are increasingly being converted into farm lands and she said failure to act now could pose greater problems.
About 30 communities with a combined population of more than 70,000 people depend on the natural lake for their livelihood.
The assembly’s intervention comes amid concerns about the high pollution and depletion of its fish stock.
Madam Antwi-Adjei expressed deep worry about the state of affairs after touring some of the communities in its basin including Pipie, Abono and Brodekwano.
She said she found it completely unacceptable, the rate at which people were clearing the vegetative cover and vowed to go to every length to protect the lake, a popular resort area for swimming, fishing and boat trips – one of the major tourist attraction centres in the country.