The M37 highway passes nearby and the town of Denizhan (formerly called Hanhowuz) stands on the northwestern shore, with the city of Tejen not too far away in that direction.

Hanhowuz Reservoir is a component of the Karakum Canal system and was created to attempt to control the erratic Tejen River.

Hanhowuz (Khauzkhan) Reservoir was constructed in a natural depression to capture winter runoff and overflow from the canal for use later during the driest periods of summer.

In the satellite image, the Karakum Canal is the brown ribbon dropping down from the upper right corner and heading south and east from the reservoir.

A portion of the canal is diverted, and can be seen the brown sediment-laden water entering the reservoir from the east and dropping its load of suspended sediments.