I almost bought a place with a nice pond on it. It, too, was declared a wetlands. I took a pass on the property.
It was suggested earlier that the homeowners were stupid and lazy to have not known that someone would come in and purchase the pond. The same can be said of the lake owner, to have purchased a lake, erected a pink fence, and to not suspect that his actions could result in a condemnation/public takings.
There is too much stupidity on all sides of this case to hope to document.