The coastal areas north of Huanchaco were full of totorales, the wetlands where the totoras (reeds used to make caballitos) grow. Aggressive urban development has wiped out much of these wetlands, which are also threatened by climate change, pollution, and vandalism. A conservation area was established north of Huanchaco, with a law passed in 1991 to preserve this area. Despite the law, illegal development and other threats continue. Conservationists estimate that these areas could be gone within 20-30 years if not aggressively protected. With the totorales gone, fishermen will no longer be able to make the caballitos, the ancient surf craft that is still used for artisanal fishing and is one of the main draws for tourism in Huanchaco.
As beach erosion continued to threaten the totora ponds near the ocean, new totora ponds were created slightly further inland. The totoras are very sensitive to changes in water chemistry and can't grow if seawater invades the ponds. The land that they are on is worth millions to developers. While the ponds do not belong to the fishermen, fishermen are allowed to harvest the reeds to make their caballito fishing craft. Each pond supplies enough reeds to make just five caballitos, each caballito lasting a few weeks before it's too waterlogged to continue using. The reeds take roughly one year to grow to a height of 4 meters. Once the totoras reach adequate height, they are cut and placed next to the ponds to dry, which takes 2-3 weeks in summer months. The drying totoras are at risk of vandalism during this drying period.