I clicked on the location hotlink under your name and google sent me to Medford ... Oregon!
I guess "Indiana" Chris should have been a hint.
I just pulled up your image from the PM. Do you own the entire lot that surrounds the pond? (It appears there is already one house on the pond?)
If so, then you just have an "engineering" problem. If not, then the pond may be jointly owned by everyone that owns a lot that encompasses any part of the shoreline of the pond. In that case, you have a "legal" issue to consider AND an engineering problem!
Ownership of the pond in situations like that tends to be very state specific for the applicable laws. You may need to find out what you are allowed to do, before you make further plans.
