The potential of the Ōi River valley for hydroelectric power development was realized by the Meiji government at the start of the 20th century.

The Ōi River was characterized by a high volume of flow and a fast current.

Its mountainous upper reaches and tributaries were areas of steep valleys and abundant rainfall, and were sparsely populated.

In 1906, a joint venture company, the Anglo-Japanese Hydroelectric Company (日英水力電気, Nichiei Suiryoku Denki) was established, and began studies and design work on plans to exploit the potential of the Ōi River and Fuji River in Shizuoka Prefecture.

The Oikawa Dam is now operated and maintained by the Chubu Electric Power Company.