The lake's waters are impounded by Little Grass Valley Dam (National ID CA00269), which was completed in 1961 (64 years ago) (1961).

[2] The lake discharges into the South Fork Feather River.

The South Feather Water and Power Agency owns the dam.

[2] Located in Plumas National Forest near the Pacific Crest Trail, Little Grass Valley Reservoir is the centerpiece of the Little Grass Valley Recreation Area, managed by the Feather River Ranger District.

The area supports boating, camping, fishing, swimming, picnicking, horseback riding, mountain biking, wildlife viewing, and hiking.