The 'concrete dam, pipeline, power house, transmission lines and all the necessary machinery were erected ... under the supervision of George [W.] Wright' Chief Mechanical Engineer.

[3][4][5] The Lower Lake Margaret Power Station was built also by the Mount Lyell Mining and Railway Company in 1931 and decommissioned in 1995.

A key feature of the development is a 2.2-kilometre (1.4 mi)-long woodstave pipeline which connects the dam to a steel penstock which feeds the power station.

[1] The lower power station was recommissioned in 2010 by Hydro Tasmania and has a three-jet Turgo turbine with a generating capacity of 3.2 megawatts (4,300 hp) of electricity.

The Mount Lyell Mining & Railway Company determined that not only was a wooden pipeline cheaper to construct, but it was also more efficient and durable than iron or steel.

With regard to King William Pine, we are sorry to say that we do not consider this at all suitable for the purpose of pipe construction on account of its lack of uniform density.

The wood stave pipeline originally joined two 29-inch-diameter (740 mm) steel penstock pipes which dropped 330 metres (1,080 ft) to the power station building in the Yolande Valley below.

The Lake Margaret Precinct and Power Station were nominated for inclusion in the state heritage register due to the unique nature of the station's role as an integral part of West Coast history that has not been closed down or destroyed – the fate of many of the man made structures on the west coast that no longer serve purposes for the mining or other industries.

On 30 June 2006 the Lake Margaret Power Station closed, due to the cost and increasing difficulty of maintaining the decrepit King Billy Pine pipeline.

Any reuse of the existing machinery would likely involve the installation of automatic shutdown capability to avoid the need for 24-hour manning of the power station in order to improve the economics of refurbishment.

Previous residents and employees were invited to attend, and the day was officially opened by Alex Wilkinson, the oldest known person who has an association with the scheme.

The village hall was a hive of activity during the day, with aged photographs being pinned the walls and people reminiscing about their time at Lake Margaret.

The date was chosen to coincide with the Mount Lyell Twenty-Five Year Reunion Dinner, which was held in Queenstown on the same weekend and included many past employees who also have an association with Lake Margaret.