Marsh in shallow water on a lakeshore. A marsh is a wetland that is dominated by herbaceous rather than woody plant species. Marshes can often be found at the edges of lakes and streams, where they form a transition between the aquatic and terrestrial ecosystems. They are often dominated by grasses, rushes or reeds.alt marshes are most commonly found in lagoons, estuaries, and on the sheltered side of shingle or sandspit. The currents there carry the fine particles around to the quiet side of the spit and sediment begins to build up.