Constructed in 1961 by the United States Army Corps of Engineers, it spans the Lehigh River at its confluence with the tributary Bear Creek, creating the Francis E. Walter Reservoir.

Although the dam was originally constructed for flood management, its reservoir has since become a popular recreational area for fishing, kayaking, and boating.

[4] In November 1988, Congress passed, and President Reagan signed, the Water Resources Development Act of 1988, which directed the Secretary of the Army to prepare to regulate the Francis E. Walter Reservoir, among other areas, for recreational purposes.

[6] In 2005, the Philadelphia District USACE, Pennsylvania Fish and Boat Commission, Pennsylvania Department of Conservation and Natural Resources, Delaware River Basin Commission, and other stakeholders entered into a partnership to plan water releases so they would simultaneously serve the flood management purposes of the dam and facilitate popular activities like whitewater rafting and fishing.

Motor boats are limited to 10 horsepower (7.5 kW), so popular water sports like water-skiing aren't feasible in the reservoir.