It was created in 1924 by constructing a dam across the stream that came down from the hills in the northern part of Chittagong.

The purpose of creating an artificial lake was to provide water to the residents of the railway colony.

It was named after Mr. Foy, a Railway engineer, believed to materialize said project.

Pahartali was essentially a railway town containing a workshop, yard, and shed.

A good number of railway employees reside in the nearby colony.