[5] Built and managed by the U.S. Bureau of Reclamation for irrigation and area water supply, it is also used for flood control and recreation.

[6] The severe drought in western Kansas during the 1930s created demand for irrigation projects and new sources for municipal water supplies.

In response, the U.S. Bureau of Reclamation began investigating the Smoky Hill River basin in 1941 to determine what would be feasible, but the outbreak of World War II halted the effort.

The Flood Control Act of 1944 authorized the creation of Cedar Bluff Reservoir as part of the Pick-Sloan Missouri Basin Program, and investigations resumed in 1945.

Construction of the reservoir and Cedar Bluff Dam began April 1, 1949 and took over two years to complete, finishing September 29, 1951.

Difficulties in organizing an irrigation district delayed construction of a water distribution system for several years.

In April 1963, the city of Russell, Kansas signed a contract with the Bureau of Reclamation to use a portion of Cedar Bluff Reservoir as a municipal and industrial water supply.

[7] In 1959, the Bureau of Sport Fisheries and Wildlife established the Cedar Bluff National Fish Hatchery immediately east of the dam.

[7] The flow of the Smoky Hill River declined sharply starting in the late 1960s, likely due to an increase in ground water pumping and the high evaporation rate in the region.

[7] Since the end of irrigation operations, the primary uses of Cedar Bluff Reservoir have been for recreation, overseen by the Kansas Department of Wildlife and Parks, and for flood control and municipal water supply, managed by the Bureau of Reclamation.

The U.S. Army Corps of Engineers assists by providing data and information on water regulation for flood control.