A pontoon boat includes a plurality of sponsons, a deck mounted on the sponsons, and a privacy enclosure mounted on the deck. The privacy enclosure has a bottom section and a top section, both of which have a rigid construction. The top section is telescopically moveable in a vertical orientation relative to the bottom section between a retracted position and an extended position. The top section is situated over, and covers the bottom section when in the refracted position, with a majority of the top section projecting upwardly from the bottom section when in the extended position.