The dam is named for Victor Gustav Bloede (pronounced as Blerda), a German immigrant who founded the nearby Avalon Water Works.

Bloede hired electrical engineer Otto Wonder to oversee the development of this unique hydroelectric project near Gray's Mill on the Patapsco River.

The power plant technology and equipment were state of the art when it went into operation in 1907, with 34-inch Poole & Hunt Leffel Wheels and two 30-inch 500 hp horizontal Samson Turbines capable of an electromotive force of 11,000 volts.

[9] In its original plan, the plant was meant as an independent competitor to the local electric companies, and supplied power to the surrounding towns of Illchester, Ellicott City and Catonsville many of which were outside of the utilities' service area.

It replaced an earlier 300 hp plant purchased for $12,000 in 1900 two miles away at Gray's mills that employed a millrace with a bevel gear and rope drive.

Bloede claimed that Consolidated was attempting to force a sale because the company was charging less on street light contracts with Catonsville and Baltimore.

[18] An $8 million request for proposal was prepared by American Rivers nonprofit in 2016 to demolish the dam to expose and remove 1,700 feet of non-supported sewer pipe situated on silt built up behind the facility.