[1] It is located in the Kaptai Upazila under Rangamati District of Chittagong Division.

The lake was created as a result of building the Kaptai Dam on the Karnaphuli River, as part of the Karnafuli Hydropower Station.

Construction of the reservoir for the hydro-electric plant began in 1956 by the Government of East Pakistan.

[2] 54,000 acres (220 km2) of farmland in the Rangamati District was submerged with the creation of the lake.

[3] 40% of the total arable land went underwater as a result of the dam construction and 100,000 people were displaced.