We have installed a small prefab pond in our back yard. It holds approx. 60 gallons. This is our second year with our pond and were told not to change the water completely this past spring. We added about 1/3 new water at clean up time and cleaned much of the grudge in and around the pond. We have a water hyacynth, soapwort and 2 water lillies as well as 6 gold fish. The pond has a stream with pump/filter system at 200gph. We daily clean out small amounts of algae but our pond water has become very murky and we are concerned for the plants and fish. It also is not so pretty to look at and can rarely see our beautiful little fishes. Please help with any suggestions. Should we be draining the pond completely and start over?

As you know, your pond is not very big. Unless the goldfish are very small (less than maybe 4"), the pond may be reaching capacity. Have you tested the pH, ammonia, and nitrite levels to be sure they're okay?

It is certainly okay to do a total clean out with small ponds when things seem out of control. My page at http://www.fishpondinfo.com/clean.htm takes you through the steps I do to clean my 153 gallon pond each spring. I save some water so it's not a 100% water change which should only be done in emergencies or as a last resort.

Is the murkiness due to suspended algae, dirt in the water, white (bacteria), or something else? I'm guessing it's algae. See http://www.fishpondinfo.com/algae2.htm
If it's more milky than green, it could be a bacterial bloom. See a section on that under http://www.fishpondinfo.com/algae.htm and more on bacteria and the nitrogen cycle at http://www.fishpondinfo.com/chem.htm

I suggest adding good bacteria, more plants, and making sure your filtration is adequate. The pages I've mentioned should give you more ideas so I won't restate them here. Good luck!