Although built to help with the supply of water, Gouthwaite Reservoir is also a nature reserve and a Site of Special Scientific Interest due to the vast range of wildlife that it supports.

It is very popular with birdwatchers and there is a small viewing platform on the edge of the reservoir. There is also a sandmartin wall at the northern end of the reservoir, near to Ramsgill village, to provide a valuable nesting habitat for these birds.