The Lac de Villefranche-de-Panat is part of an electricity generating system where waters falling on the granite plateau of Lévézou that had drained unhindered into the Viaur and the Tarn river were captured and used by the power stations at Alrance and Le Pouget.

Waters from the Vioulou fell, and waters from the Vaur were pumped into the reservoir at the Lac de Paraloup whence they passed through a 10.8 km steel lined tunnel to the Alrance power station and into the lake.

From this lake tunnels were dug to the Lac de Saint-Amans where the waters drop 461m vertically to the power station at Le Pouget on the Tarn.

The tunnel leading from Villefranche-de-Panat to the Lac de Saint-Amans is 3.4 m in diameter and 4,690 m long.

The lake is used for boating, swimming, and Hydro ULM (microlight sea planes)