Native bay grasses provide habitat and food for wildlife, including fish, waterfowl, insects and shellfish. While wildlife feeds off the vegetation or seeds, the leaves and stems of bay grasses are nurseries for young fish and hiding places for vulnerable invertebrates. Native bay grasses are endangered by the introduction of non-native species, which do not provide the nourishment needed for the wildlife of a particular habitat. Non-native wildlife may also destroy bay grasses, as in the case of the mute swan and its overconsumption of bay grasses in Maryland's Chesapeake Bay.
While bay grasses do not necessarily absorb excess water, they do absorb the excess nutrients which may otherwise harm the bay. During photosynthesis, bay grasses use water and sunlight to change carbon dioxide into materials it can use. The use of these excessive nutrients, such as nitrogen, helps prevent algae growth. Algae thrives on these nutrients. Excessive algae clouds water, blocking the necessary sunlight for bay grasses. It may also cover bay grass leaves, adding to the light blockage.
Bay grasses help prevent shoreline erosion. The presence of plentiful bay grasses inhibits wave strength leading to erosion. The density of bay grasses aids in reducing water currents, while the roots keep sediments from shifting and play a role in stabilization. By reducing sediment movement, bay grasses prevent some beneficial aquatic organisms from being buried and keep water less cloudy.
Lawn grasses absorb a great deal of rainwater. Homeowners and lawn-care professionals know that lawns are thirsty and require sprinkler systems or other irrigation methods to stay green and healthy. However, overfertilization of lawns to maintain an intense green leads to damage further afield, such as in the nation's bays. In 2011, densely-populated New Jersey, a state famous for its shorelines and water resources, put into practice state-wide fertilizer law, limiting the amount and types of fertilizer use. One factor leading to adoption of this law was the fertilizer runoff into the state's bays, causing pollution and changes in wildlife habitat.