This stage was completed at a cost of A$42 million and involved raising the main embankment, spillway and intake towers by approximately 18 metres (59 ft) to create a surface area of 9.72 square kilometres (3.75 sq mi).

When the dam reached full capacity, on 7 January 2008 work began on Stage 3[12] and was completed on 19 December 2011.

[3][4][13] Stage 3 construction was completed by the Hinze Dam Alliance, a joint venture between Seqwater, with private sector partners URS Corporation, Sinclair Knight Merz and Thiess.

[13] The eastern boat ramp is located in Mudgeeraba and features a craft and paddle launching platform as well as toilets and bin facilities.

Since the Stage 3 upgrade, recreational activities allowed include walking, electric or manual-powered boating, fishing, biking and horse riding.

[15] An interpretive centre was opened on 19 December 2011, along with new parking, walking trails, toilet facilities and barbecue areas.

[4] The final design of the dam was criticised in the media and by residents and politicians, some describing it as a "concrete bunker".

Some government representatives as well as some mountain bikers have sought to have the competition moved away to the unsecured trails at Nerang State Forest.

[citation needed] The Gold Coast Mountain Bike Club maintain the course and sometimes host a race on the circuit the first Sunday of each month.