The main purpose of the dam is for potable water supply of the Gold Coast region.

[4] The dam is located 9 kilometres (5.6 mi) west of Tugun and 25 kilometres (16 mi) driving distance from Mudgeeraba, and is located directly upstream from the Hinze Dam.

Prior to the completion of the Hinze Dam, the Little Nerang Creek Gravity Scheme supplied the water requirements of the Gold Coast area.

The uncontrolled un-gated spillway has a discharge capacity of 570 cubic metres per second (20,000 cu ft/s).

As of 2019, Access to Little Nerang Dam and Little Nerang Dam Road Seqwater is now restricted to SEQWater employees and residents of the road, with a large security gate blocking access.