Managed by the Kurihara Dam Regional Office (which is owned by the Miyagi Public Works Department), the primary purpose of the dam is to provide flood control for the Hasama River, an important tributary for the larger Kitakami river system as well as provide water to the cities of Kurihara and Tome.

The dam was constructed at a narrow point where the Hasama River transitions from a mountainous to a plains region.

However, the area has historically encountered frequent damage from flooding, and projects to modify the rivers have been undertaken ever since the period of the Sendai Domain.

Additionally, as the arable land continued to expand, the traditional method of drawing water directly from the river began to reach its limits.

In 1954, the Kitakami River basin received a designation under the name "Kitakami Specific Area Comprehensive Development Plan", with the goal of promoting industrial development in the area, centering on Sendai, through controlled flood control and water utilization.

However, as time went on, the demand for water and electricity caused by the onsite ore smelting and the increasing number of workers became an issue.

The current location of the dam was selected for two primary reasons: firstly, the foundation ground was composed of an area consisting of andesite with steep banks on both sides.

At the time, 181 households and other facilities were located at the center of the former village of Hanayama, including the town hall, a school, and a clinic.

With the construction of Hanayama Dam, these buildings and houses were to be submerged, thus compensation negotiations began with the residents.

The prefectural government proceeded to establish the Hanayama Dam Compensation Office under the direct control of the governor, and negotiated with the Hanayama Village Dam Task Force Committee while receiving advice from the advisory Ichihasama River Comprehensive Development Project Task Force Committee.

A representative committee of 3 members from the prefectural government and 10 members from the Hanayama Village Dam Task Force Committee was established to hold discussions, and the discussions' results were then sent to the Ichihasama River Comprehensive Project Development Office (on the prefectural government side), the Task Force Committee, the local community advisory board, and the village assembly (on the local residents' side).

Following the negotiations, the Zashu area, located upstream from the former village center, was selected as the replacement land, and construction efforts for the new residences and facilities soon began.

At a height of 47.8m at the time of completion, the purpose of the dam was fourfold: flood control, unspecified water utilization, irrigation, and hydroelectric power generation.

Purposes related to Hosokura Mine included unspecified water utilization and hydroelectric power generation.

2 Power Station, maximum permissible output: 1,500 kW) was constructed to support Hosokura Mine's operations.

To prevent further damage from overflow, the operators were forced to engage in an emergency discharge of the dam's floodwaters.

This was the "Hanayama Dam Phase 2 Construction Project", and since large scale modifications to the area's embankments were to be implemented, an urban redevelopment plan was also drawn up to reorganize the land.

With the opening of the Tohoku Expressway and Shinkansen as well as the following increase in population in the Kurihara area as a commuter town for Sendai City, the water supply was placed under additional strain.

This project included raising the dam's height and its embankments by 0.7 meters and rebuilding the water intake tower and gates.

Lake Hanayama, created as a result of the dam's construction, is now a recreational spot in Kurihara City visited by many of its inhabitants.

However, in order to conserve resources for the local fisheries, juvenile fish with a length under 15 cm cannot be brought home.

There are various facilities such as the Kurihara City Branch Office and the Hanayama Youth Travel Resort nearby, as well as various leisure installations such as a tennis court and camping ground.

Also nearby are the ruins of Hanayama Castle, an Abe clan stronghold occupied during the Former Nine Years' War, the ruins of the Hanayama Village Nuruyu Gobansho (guard post) of the Sendai Domain, which is designated as a national historic site, Oda Dam, and the Hosokura Mine Park.