Its upper reaches are approximately 6 km further to the west, close to where the Narracan Creek meets the Latrobe River.

The reservoir was first constructed by the State Electricity Commission of Victoria between 1959 and 1961 and has the capacity of 8,600 megalitres (ML).

In 2002 major works were undertaken to bring the reservoir up to modern day standards, including anchoring the dam wall to the foundation bedrock and strengthening the four gates.

This supply is supplemented with water from Blue Rock Lake approximately 15 km upstream on the Tanjil River.

[5] The Moe Golf Club is also located on the southern shore, with a number of holes overlooking Lake Narracan.