A retention basin is used to manage stormwater runoff to prevent flooding and downstream erosion, and improve water quality in an adjacent river, stream, lake or bay. Sometimes called a wet pond or wet detention basin or stormwater management pond, it is an artificial lake with vegetation around the perimeter, and includes a permanent pool of water in its design. It is distinguished from a detention basin, sometimes called a "dry pond," which temporarily stores water after a storm, but eventually empties out at a controlled rate to a downstream water body. It also differs from an infiltration basin which is designed to direct stormwater to groundwater through permeable soils. Wet ponds are frequently used for water quality improvement, groundwater recharge, flood protection, aesthetic improvement or any combination of these. Sometimes they act as a replacement for the natural absorption of a forest or other natural process that was lost when an area is developed. As such, these structures are designed to blend into neighborhoods and viewed as an amenity. In urban areas, impervious surfaces (roofs, roads) reduce the time spent by rainfall before entering into the stormwater drainage system. If left unchecked, this will cause widespread flooding downstream. The function of a stormwater pond is to contain this surge and release it slowly. This slow release mitigates the size and intensity of storm-induced flooding on downstream receiving waters. Stormwater ponds also collect suspended sediments, which are often found in high concentrations in stormwater water due to upstream construction and sand applications to roadways.

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