[3] Buhisan Dam was built to address devastating fires that could again hit the city, and the need for a safe water supply during a cholera outbreak.

The American Governor-General William Cameron Forbes supported Osmeña's proposed project, and helped secure the P550,000 funds for the construction and completion of the Dam.

Forbes issued an executive order designating 5,590,000 square meters of land in Labangon for the proposed watershed and reservoir.

In order to celebrate this breakthrough, a water fountain was then built, which would now be known as the Fuente Osmeña Circle, which was also named after the speaker who proposed the waterworks.

A primitive warning bell, essentially consisting of "an oxygen tank and a steel rod to hit it with" is being used to alert residents of the barangay of Buhisan to evacuate in the event that rising water levels reach the top of the dam.