The mountain streams of the upper Dajia River are the only habitats of the critically endangered landlocked Formosan salmon.

[3] The reservoir provides municipal drinking water, generates hydroelectric power, is used for recreation and prevents flooding.

[4] The Dajia experiences frequent earthflows during typhoons and heavy rain, damaging homes and breaking up roads, sometimes permanently.

[citation needed] In September 2008, rains from Typhoon Sinlaku resulted in storm-swollen waters which washed away supports for a section of Houfeng Bridge (which links Houli Township and Fengyuan City), leaving six people dead.

[5] In June 2010, the bridge finally reopened to vehicular traffic after over NT$1.4 billion of reconstruction work.