Grass-wrack pondweed grows in still or slow-flowing, lowland, calcareous and often rather nutrient-rich water bodies such as backwaters in rivers, ponds and slow-moving streams, usually on fine substrates such as sand, silt, clay or peat, usually in less than 1.5 m water depth. However, Japanese populations have been reported growing in 5 m of water. It is also capable of colonising artificial habitats such as canals and drainage ditches, so long as these are not heavily boated. Grass-wrack pondweed is intolerant of turbid water and prefers some shade. Like its close relative
Potamogeton acutifolius, it rarely grows in lakes; the shallow root system is intolerant of disturbance and is therefore vulnerable to wind action, boat disturbance and uprooting by fish.
Potamogeton compressus is a rather early succession species and tends to be outcompeted unless the habitat it grows in is regularly disturbed. As a result, populations are often transient. Most reproduction in the wild appears to be asexual via turions, which is likely to mean that populations have limited ability to recolonise if lost. However, turion production is not prolific, with wild plants typically producing only 4-5 turions. Flowering and fruiting seems to be more frequent in shallow water environments with fluctuating water levels, such as ditches. Grass-wrack pondweed is threatened in many parts of its range especially in Europe: it is Extinct in the Czech Republic, Critically Endangered in Flanders, Endangered in Germany, England, Vulnerable in the Carpathian region, Wales, and Near Threatened in the Netherlands. In North America it is listed as Endangered in Maryland and New Jersey, Threatened in New Hampshire and Rare in Pennsylvania. In Britain
P. compressus is a Biodiversity Action Plan priority species and is subject to conservation action including translocation efforts. These declines probably reflect the widespread damage to riverine landscapes across lowland Europe, and in particular the loss of many features such as back channels, oxbow lakes and floodplain ponds as rivers are channelised and engineered for flood defence and agricultural purposes. The largest British populations are in disused or rarely boated canals, which cannot be the primary habitat for grass-wrack pondweed and are not a sustainable long-term habitat. However, in the short-term, canal populations are an important reservoir for this species. Competition with introduced
Elodea canadensis (Canadian pondweed) and
E. nuttallii (Nuttall's water-thyme) may also be problematic. It is possible that the widespread reintroduction of
beaver across Europe may help to arrest or reverse the decline of grass-wrack pondweed, as beaver ponds may well be a suitable habitat for this species. ==Cultivation==