The level currently sits a foot higher than its long-term average of 578.8 feet. Officials say the cause is higher than average rain and snow levels.
In 2013, homeowners there sued the state, contending their private property extends all the way to the water.
A kayaker notified local authorities in Bloomington last month that a piece of property on Lake Monroe was clear-cut to the shoreline.
The property owners are under investigation for clearing the area of all vegetation. They could face thousands of dollars in fines.
A study of the Indian Creek watershed in Morgan and Johnson Counties finds that some contaminants are well above safe limits.