[1][2] The dam created a reservoir known as Khadakwasla Lake which is the main source of water for Pune and its suburbs.

A few kilometres to the south lies Sinhagad Fort; the twin dams of Panshet and Varasgaon, which mainly supply water for irrigation but also feed into Khadakwasla Lake, lie just 8 km (5.0 mi) due west of the backwaters of Khadakwasla Lake.

It was not blown up, as some have been led to believe, it simply collapsed at the point of greatest impulsive force, unable to withstand the destructive forces generated by three times the quantity of water gushing in from upstream than it was meant to store at peak capacity as placid water.

The dam has 11 radial type sluice gates and six irrigation outlets, flowing into two canals as explained below.

[10] The dams on the lakes are now turning into tourist spots [11] and the outgoing water might suffer a drop in quality, unless controlled.

In a modernisation programme, the two existing canals from Khadakwasla Lake will be upgraded to prevent losses due to evaporation, seepage and theft.

The first 32 km (20 mi) outbound of the right bank canal will carry water via a tunnel and the land above used for public amenities.

[12] The birth of Khadakwasla lake took place due to the severe droughts during the 19th century in East Pune that paralysed crop growth and prompted engineers to take up major irrigation works.

Captain Fife RE of the British Army recommended a high level reservoir at Khadakwasla in 1863 and subsequently carried out detailed surveys and investigations.

The right bank canal is 112 km (70 mi) long and irrigates about 45,000 hectares (170 sq mi) of land in Pune district and the villages around Haveli, Daund, Indapur and Baramati, while the left bank canal supplies drinking water to Pune, Kirkee and surrounds.

[15] Panshet Dam was zoned at a height of 51 m (167 ft) with impervious central core outlet gates located in a trench of the left abutment; hoists were not fully installed when floods occurred at the site of construction.

The rain caused such a rapid rise of the reservoir water level at Panshet that the new embankment could not adjust to the dangerous loading condition.

Due to incomplete rough outlet surface, the flow through was unsteady which caused pressure surges.

Former secretary of the state irrigation department, Madhukar Deshmukh, who had worked as a deputy engineer at Panshet dam till late 1959, explained what actually went wrong.

The force of the water was so great that it managed to dislodge the concrete blocks, which resulted in the earthen portion of the dam giving way.

The engineers were certain the dam would collapse; they were praying that the Armed Forces personnel's aid would delay the inevitable to dawn, so that the people of Pune could be warned in time and those living on the banks of the rivers Mutha and Mula could be evacuated.

[19] The dam stood firm till well past dawn, contributing to the safety of residents living downstream in the vicinity of the path of least resistance to the surging freestream water.

Apparently, All India Radio did not broadcast any warnings, and was playing a regular scheduled music program when the floods struck.

Bhalerao and Panse were blamed for oversight and lack of common sense in not constructing a wide reinforced archway in the centre of the mudwork dam for water to flow through.

While Pune city, Camp and Cantonment area were not too severely affected, people in Khadki (Kirkee), Dapodi, Bopodi, Phugewadi, Hadapsar, Shivajinagar and Deccan Gymkhana had limited water supply.

[21] At the National Defence Academy (NDA), Peacock Bay, the Naval cadets training section and the lakeside guest rooms were submerged.