Most people know blue-green algae from the blue-green floating layers that can form in sheltered places in many of our ponds and lakes in the summer. Not all blue-green algae form floating layers, however, all blue-green algae can cause skin irritation in swimmers. In addition, many blue-green algae produce toxins that can cause nausea, diarrhea or more serious complaints. Dogs and waterbirds can also fall victim to toxic blue-green algae blooms.