Beaver are a keystone species that enhance wetland habitat, reduce down-stream flooding, silt runoff and diffuse pollution in major water courses. Coppicing of bank side vegetation by beavers is cost effective and sustainable. This activity increases the biodiversity value of wetlands for plants, insects, fish, amphibians, birds, and mammals.
Habitat formed by beaver activity is vital for a wide range of species such as: 

• Mammals - otters, water voles, water shrews and bats
• Insects - dragonflies, aquatic invertebrates and species preferring marsh or wet woodland.
• Reptiles and amphibians - grass snakes, newts, frogs and toads
• Fish - ponds and channels increase habitat and food for fish, increasing biomass and species diversity. Ponds provide refuges for fish in drought condition
• Birds - creation of breeding or feeding habitat and the provision of refuge areas for a wide range of species
• Higher Plants - creation of a wide and dynamic variety of wetland habitats which increase the diversity and abundance of plant species.

At a minimum beaver grazing is likely to contribute to 3 UK BAP priority habitats and 3 UK BAP broad-habitat type action plans. Beaver grazing could sustainably benefit in excess of 12 UK BAP priority species. Beaver dams and channels may contribute to actions in up to 31 priority species action plans.
There have been two well publicised projects in England where beavers are employed as habitat mangers. The first of these began in 2001 at Kent Wildlife Trust’s Ham Fen Nature Reserve, while the second in 2005 at the Lower Mill estate in the Cotswold Water Park was undertaken by Conservation Builders Ltd.