Three billion lei were allocated and spent on the lake, which was supposed to cover about 200 km2, have a capacity of 150 million m³, and be located south-west of Târgu Jiu, Gorj County.
Two functions were designated for the Ceauru Dam: to absorb floodwaters when needed, to protect the mines in the region and to supply the downstream communities, as well as the Rovinari Power Station, then under construction.
This is considered an imperfect solution, as during a drought, both Rovinari and Turceni (located 40 km downstream) would no longer be supplied, instead being forced to recirculate cooling water, or else halt operations.
In 2007, the mayor of Telești, Constantin Drăghici, suggested that because a forest has been allowed to grow inside, tree trunks would block the weir in case of flooding, and a deluge could break open the dike.
The head of the Gorj County Water Management Service countered at the time that the dike and weir are maintained by his company and that the lake bottom is being cultivated by the former owners (who have received proper title to the land).