Its reservoir supplies drinking water to Chemnitz and, in conjunction with the Central Ore Mountains reservoir system, that includes the reservoirs of Neunzehnhain I, II and Saidenbach also supplies water to the entire region covered by the South Saxony Long Distance Water Association (Zweckverband Fernwasser Südsachsen).

An increase in its capacity was no longer possible due to the limitations of terrain and rising pollution of the Zwönitz, which meant that the source of water supply had to be switched from ground to surface water.

It cost 1.3 million marks and an average of 142 workers were employed in its construction.

At the time of commissioning the Einsiedel Dam was considered a technical masterpiece.

The Einsiedel barrage is a curved gravity dam made of quarrystone, based partly on the Intze principle, but without the Intze wedge, retaining wall drainage and water-side protective layer (facing).