The dam was constructed by the U.S. Army Corps of Engineers as part of the Pick-Sloan Plan for Missouri watershed development authorized by the Flood Control Act of 1944.

Power generation began at the facility in 1964 and the entire complex was completed in 1966 at a total cost of $107 million.

Lake Sharpe covers a total of 56,884 acres (23,020 ha) and drains an area just under 250,000 square miles (650,000 km2).

The construction of the dam resulted in the dislocation of people on the Crow Creek and Lower Brule Reservations.

The flooding of the land for the reservoir also resulted in the loss of limited plant life resources used by them for food and medicine.