A man's body has been found at Puckey's Reserve at Fairy Meadow, Monday morning.
Wayne Nanasi and his son Christopher were walking through the reserve about 8.45am when they stepped onto the northern edge of the lagoon and came across the body.
The man was clothed in shorts and a t-shirt , without shoes, when he was discovered.
"We were just out for our normal walk," Mr Nanasi said.
"We got down to where the police are now and saw there was a body in the water.
"He looked young to me, but police have said he has grey hair.
"There's a lot of needles around there, a couple of Stanley knives, a couple of lighters.
"They (police) haven't told us what's happened."
Police Rescue arrived at the site 9.50am and began the process of covering the man's body, which had remained visible to onlookers gathering near The Lagoon Seafood Restaurant.
The area has been marked off as a crime scene.
Officers from Wollongong Police District have yet to formally identify the man, and police inquiries into the matter are continuing.
UPDATE, 3pm: Police say the man's death is not being treated as suspicious.
While he is yet to be formally identified, he is believed to be an Illawarra man aged in his 40s.
Police say the man's personal belongings were located nearby.
A report will be prepared for the information of the coroner.