It was created in 1968 by the Grand River Dam Authority (GRDA) as an integral part of the Salina Pumped Storage Project.

It is northeast of Locust Grove and southeast of Salina, Oklahoma.

Originally named Chimney Rock Lake, it was renamed in 1981 to honor W. R. Holway, the consulting engineer who was responsible for constructing the Spavinaw Water Project, Pensacola Dam, and other important projects.

[1] Its primary purpose is peak power generation.

GRDA prohibits swimming and the use of internal combustion engines on the reservoir.