The potential of the Ōi River valley for hydroelectric power development was realized by the Meiji government at the start of the 20th century.

Its mountainous upper reaches and tributaries were areas of steep valleys and abundant rainfall, and were sparsely populated.

The Ōigawa Railway Ikawa Line was expanded to facilitate dam construction, and the newly created Chubu Electric Power Company received a loan from the United Nations Bank for Reconstruction and Development on September 10, 1958 to fund the project.

The generators at the Hatanagi No.1 power plant have a capacity of 137,000 kW, and a maximum flow rate of 137 m3/s.

The Hatanagi No.2 power plant adds an additional 85,000 kW to the electrical grid of the Tōkai region of central Japan.