Peling Tsho is situated towards the north of the Dechenling village under Nganglam Dungkhag. The area falls under the transition zone between the foothills and the middle mountains of the Himalayan Mountain Range in Bhutan.

Dechenling is quite a broad middle mountain valley surrounded by hills that define its watershed boundaries. The area is drained by the stream originating in the Peling Tsho. The altitude of the valley bottom is about 1000 m while the highest hill (Dungphu) is about 1400 m. The valley is defined by (going from right bank of the stream) Dungphu, Manizay, Metola, Demkher, Kholomri, Postkar, Charchari, Phaptari, Gonpawoong and Martshala (reaching directly opposite Dungphu on left bank).

The lake has an area of 186 hectares and is the only watershed in Dechenling. Once upon a time this lake was a water source for animals and other living beings. It had a lot of biodiversity. However, in late 1990s the local government had allotted some acres of land from the lake to the public and used as wet land for paddy cultivation. The forests were cleared and trees were felled. The lake has dried up as it was attacked from all the directions. It appears now that everybody has realized the importance of preservation of environment and eventually stopped cultivating in and around the Peling Tsho.

Unfortunately no conservation measures are being taken in the lake and also it is not included in the RGOB?s 10th and 11 FYP.
Owing to such problems, this tshogpa would like to initiate planting trees, bamboo and easily growing fodder species in and around 100 acres of land. The trees in and around the Peling Tsho had been thoroughly cut down and the watershed and biodiversity has been totally degraded. The Peling Tsho has a big wet land of 186 hectares and is eligible for Ramsar Site like Bomdeling in Tashi Yangtse and Phobjikha in Wangdue Phodrang.