The lagoon process for wastewater treatment in the Village of Panama involves using large, shallow ponds to naturally treat sewage and wastewater. In these lagoons, microorganisms break down organic matter over time, allowing for the purification of water through biological processes. Sunlight and natural aeration also play a crucial role in enhancing the treatment by promoting the growth of beneficial algae and bacteria. This environmentally friendly method is an effective way to manage and recycle wastewater while minimizing the impact on the surrounding ecosystem.