The lake was formed by the Akosombo Dam, which was originally conceived by the geologist Albert Ernest Kitson during the British colonial period in 1915, to exploit the river's energy for smelting locally-sourced bauxite.

British and local governments formed a joint preparatory commission, which concluded that over 60,000 people will have to be relocated, but that the lake will boost opportunities for fishing, thus helping to feed the population in the region.

Soon after, a public agency was established, and organized construction of 52 replacement towns, which were envisioned to serve as a model for modernization and improving the livelihood of the local population.

Poor organization caused significant hardship to the local population and led to the issues continuing long after the project's completion.

[1] In the long run, formation of the lake disrupted traditional fishing and farming practices in the region and caused a large spike in disease prevalence.

[5] However, regional food production intensified in the decades after the construction of Akosombo dam, and the lake also opened a large navigable pathway to the north of the country and provided new opportunities for development of tourism which is gaining in prominence.

"[7] In addition to generating foreign currency for the region and reducing the dependence of locals on fishing as a primary economic activity, the removal of submerged trees is improving navigation on the lake and increasing safety.