The dam forms the Horseshoe Lake as it slows the passage of the Verde River.

Just below Horseshoe Dam is excellent fishing – popular spots include Catfish Point and Mesquite Cove.

[citation needed] The dam was built by the Phelps Dodge corporation, a mining company, with funding from the Defense Plant Corporation, a World War II government enterprise to facilitate war production.

At the time, Phelps Dodge had nearly doubled its copper mining capacity in eastern Arizona.

[1] The city of Phoenix funded spillway gates in 1949, purchasing part of the reservoir's capacity.