The reservoir is operated by South Staffordshire Water and was created in 1963 to augment the supply of water in a large area of South Staffordshire and the Black Country.

The main source of water to the reservoir is from abstraction from the River Severn.

The site chosen for the reservoir was the valley of Chelmarsh Brook on the west bank of the Severn, about ¾ mile from Hampton Loade Ferry.

Previously the site had been the location of a small dam which created Park Pond and served as an ornamental lake for Chelmarsh Hall.

The reservoir is home to a sailing club (www.chelmarshsailing.org.uk) whose refurbished facilities were opened by the Princess Anne in 2004.