The primary purpose of the dam and the other reservoirs is to supply Birmingham with water.

[1][2] In 1997, a 480 kW hydroelectric generator began operation at the dam.

[3][4] The Craig Goch reservoir had been identified in the 1970s and in the 1990s as a potential source of water for the south-east of England.

[5] The latest project envisaged raising the existing dam, adding a secondary dam at the head of the River Ystwyth valley and piping water from the high head generated into the River Severn and subsequently transferring it by pipeline aqueduct to the head-waters of the River Thames in the Cotswolds.

[5] Craig Goch Dam was featured prominently in Episode 3 Series 3 of BBC Wales drama series Hinterland, broadcast 2017.