Owned and operated by Manawa Energy, the station generates power from the Rangitata Diversion Race (RDR) irrigation scheme when agricultural water demand is low.

On 16 June 1945 (1945-06-16) the Minister of Works, Bob Semple, opened the power station, and "set the 36,000bhp in motion".

The Highbank Power Station was constructed as part of the Rangitata Diversion Race (RDR) irrigation scheme by the Public Works Department.

[8] The outbreak of World War II saw the project delayed due to manufacturing, material, and manpower shortages.

An unfortunate event was the sinking by enemy action of the ship which was carrying to New Zealand the stator for the generator at Highbank.

This led to the turbine runner being replaced along with improvements in sediment control at the canal intake and ongoing removal of sediments to reinstate the original performance In 2010, TrustPower (now Manawa Energy) installed a river intake, fish screening, and pumping facilities to deliver the water from the Rakaia River to the RDR using some of the existing Highbank Power Station facilities.

[10] TrustPower (now Manawa Energy) generation manager Mike Kedian believed pumping water back through the penstock was a New Zealand first.

[14] Highbank Power Station is potentially exposed to a risk of out-of-phase synchronisation resulting from manual or automatic switching on the 66 kV network.