A charity called Nuture Lakeland has set up the Ullswater Environment Recovery Fund.
Money raised will be used to rebuild footpaths and walls; restore habitats; and deal with water quaility issues.
Local companies such as Ullswater Steamers are backing the project.
Karen Mitchell, Director of Nurture Lakeland, says: "The severity of the flooding in the Ullswater and other areas has been really shocking. It’s fantastic how quickly businesses are picking themselves up, mopping up and re-opening. And we can help by raising funds for the work which will be needed in the longer term to repair some of the damage to the local environment so that the visitor economy can thrive again."
Sue Wallace, Chair of Ullswater Association and owner of local company, Reach Beyond Adventure, says: "Lots of people who really love Ullswater and have seen the pictures of the floods, such as the Pooley Bridge collapsing, have asked how they can donate money to help restore the area. Howtown, Glenridding, Patterdale, Pooley Bridge, Watermillock and the surrounding areas have all been affected. But it has been a real boost to know that people care so much. And it is great that Nurture Lakeland have set up this new appeal."
Rachel Bell, Marketing Manager, Ullswater Steamers, says: "Ullswater is one of the most beautiful Lakes in the Lake District. People come here for the tranquillity and the lakeside landscapes and to cruise the water and walk so we need to ensure funding is available to repair footpaths and restore access to this spectacular place."
Businesses in the area are encouraging visitors to show their support by continuing to visit and are using social media to share details of the businesses that are open or due to reopen soon . Visitors can check the situation by looking on Facebook @Ullswater The Lake District and @ullswater_info on Twitter.