The project was approved by the government of Maharashtra in 1976 for an estimated cost of Rs 5433 lakhs.

Majalgon Dam is to be built from earth berms on either side of a gated concrete spillway.

The spillway will be approximately 2 kilometers upstream from the town of Majalgaon.

In addition, a canal 165 kilometers long was constructed to irrigate 93885 hectares (ICA) of land in Beed, Parbhani & Nanded districts.

No forest land was flooded, and affected villages are relocated in 26 new gawthans.