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Before digging, make sure there are no power lines or pipes located in the area where you'll be working. Dig a hole to the desired size for the pond.
Lay a plastic liner inside the hole, extending it up and around the sides as well as the surrounding area. This will make sure the water will stay in the pond and not seep into the ground.
Lay flagstone or other type of rock over the liner that surrounds the hole. Cover the bottom of the hole and any exposed liner. If any liner is left exposed, trim it away to remove.
Get creative by arranging the stones surrounding the pond, or perhaps adding a water fountain feature. Stack the stone into a sloping mound at one end of the pond and run tubing underneath. Place the pump inside the pond and attach the tubing. Adding a fountain to keep the water moving helps keep the pond clean and fresh longer.
Once everything is in place, try to fill any remaining gaps with small stones and fill with water. Add more stones around the inside wall of the pond, again with the goal of completely hiding the plastic liner.
Dress up a pond by adding aquatic plants for a tropical oasis. For a shimmering effect, add tumbled blue glass rocks to the bottom.