The reservoir stores water for use in hydroelectricity production with the Kárahnjúkar Hydropower Plant.

It is made of 8.5 million cubic meters of material, making it the largest dam of its type in Europe.

To create the desired level, auxiliary or saddle dams were built.

[1][2] Water used for hydroelectricity production in the reservoir is discharged in the Jökulsá í Fljótsdal [ˈjœːkʏlsˌauː i ˈfljoutsˌtaːl̥] river to the northeast.

[2] In January 2005, the Icelandic parliament voted to give a large area around the dam park status, thereby protecting it.