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10 1 investigation needed . 3 . 1 . 2 Surface Waters Pelican Island NWR is located in the Indian River Lagoon , a narrow estuarine lagoon that extends 155 miles along Florida ' s east-central coast . The most proximate watershed is the St . Sebastian River (which includes the C-54 canal ) . The lagoon ' s ' natural drainage extends from the western edge of the barrier island westward to the Atlantic coastal sand ridge . The St . Sebastian River watershed extends west of the sand ridge and contributes fresh water to the brackish lagoon . The C-54 canal extends into the St . John ' s River Upper Basin beyond the natural watershed , and contributes fresh water periodically . The Sebastian Inlet is almost directly east of the mouth of the St. Sebastian River. The mixing of these waters creates a true estuary . Historical ) the Indian River Lagoon was predominately a freshwaters stem due to the Y � 9 p Y Y limited number and inconsistent character of natural ocean inlets . Evidence of this is rapparent from the testimony of early pioneers and from the presence of abundant oyster shell mounds that once dominated the shorelines . Today , the more saline tolerant clams have displaced oysters as the predominant shellfish in the system . Under § 303 (d ) of the Clean Water Act, the U . S . Environmental Protection Agency ' ( EPA) has identified parameters of concern for impaired waterways ( U . S . Environmental Protection Agency , 2000a , 2000b) . At the confluence of Sebastian Inlet and the St . Sebastian River, the Indian River Lagoon has several identified parameters of concern : cadmium , lead , mercury , nutrients , selenium , silver, thallium , and dissolved oxygen ( U . S . Environmental Protection Agency , 2000b) . Where the St. Sebastian River meets the Indian River Lagoon , nutrients and dissolved oxygen are identified by the EPA as parameters of concern ( U . S . Environmental Protection Agency , 2000b) . Water quality in the Indian River Lagoon varies depending on tides , weather, and the extent of shoreline development. In general , the water quality in the Refuge is good to excellent because of the absence of point source pollution and the relatively undeveloped , vegetated shoreline . The Florida Department of Environmental ' Protection identifies the waters within the Refuge as Class II waters , which indicates that the water quality is sufficient for shellfish harvesting . On the west side of the proposed restoration project area are Bird ' s and Pete ' s Impoundments . These mosquito impoundments are each connected to the Indian River Lagoon via one 24- inch and five 30-inch diameter culverts with flap gate risers . The water quality in the impoundments was evaluated in 1996 in response to elevated coliform levels found in the vicinity of Pete ' s Impoundment ( IRC 3 ) . O ' Bryan and Carlson ( 1996) found coliform levels to be lower in the interior of the impoundments than along the shoreline , and concluded that the impoundments were not the source of the elevated coliform levels found near shellfish leases .