It was built in 1907 under the direction of William D. Fargo by the Grand Rapids - Muskegon Power Company, a predecessor of Consumers Energy.

[8] The Foote brothers set up similar city specific companies in Battle Creek and Adrian within a few years.

But the demand for power was growing, driven by among other things, the advent of the streetcar and increased industrial use of electricity, outstripping the capacity of smaller rivers and existing dams.

[7] The dam was located near Allegan, about 25 miles (40 km) away from the city, an unheard of distance at the time, and was the first major hydroelectric project in Western Michigan.

[3] Fargo developed new methods for construction of earth embankment dams on foundations of soft soils, which made use of hydraulic sluicing.

A diameter reduction to 4 inches (100 mm) increased the pressure to about 80 PSI, and the water was fed into nozzles via flexible rubber hoses.

Fargo also used this method to construct a fill of 20,000 cubic yards (15,000 m3) for a highway bridge crossing the Muskegon River immediately downstream from the dam.

[14] Two reinforced concrete retaining walls extend 40 feet (12 m) upstream from the northeast and northwest corners of the generator building, forming a triangle and serve as an anchor for a floating trash boom which keeps refuse out of the turbine pits.

A similar triangle is formed by two reinforced concrete retaining walls extending 50 feet (15 m) downriver from the south side of the generator building.

[14] The Croton Dam and hydro plant were completed in 1907, and a grand opening was held on September 7, 1907 in the village (named after Croton-on-Hudson, New York).

[12] Contemporary accounts report that "Grand Rapids Mayor George Ellis and a large contingent of city and business officials journeyed north to the village of Croton on a special train.

After touring the big dam, they adjourned to a nearby field for a fine dinner, followed by cigars and a friendly baseball game.

Dr. Charles Steinmetz, the "wizard" of General Electric, visited the site and conducted tests on the transmission lines in 1908.

Curious spectators rode excursion trains to the site, where they received a tour of the dam and powerhouse, as well as a grand dinner.

It allegedly causes potentially harmful changes in water temperature and oxygen levels in a stretch of the river downstream of the dam, according to company data.

The Croton and Hardy nearly failed during the peak of the flood, caused by a storm that dumped 14 inches (36 cm) of rain on West Michigan in 48 hours.

[5] The federal government has relicensed the dams through 2034, but has required operating changes reducing their harmful effects on the Muskegon River.

[5] The Croton Dam and hydroelectric plant is owned and operated by Consumers Energy, an electric power company headquartered in Jackson, Michigan.

This causes wide fluctuations in water flows and reservoir levels, typically with low outflow during the night when power demand is lowest.

It can be drawn down up to 12 feet (4 m) to meet winter power demand but is required to return to normal levels by the end of April each spring.