The potential of the Ōi River valley for hydroelectric power development was realized by the Meiji government at the start of the 20th century.

Its mountainous upper reaches and tributaries were areas of steep valleys and abundant rainfall, and were sparsely populated.

From the 1930s through the 1960s, numerous concrete gravity dams had been constructed on the main flow of the Ōi River, and on its various tributary streams.

The remote and steep-walled Misakubo valley was uninhabited, and was designated as the site for a new dam in the early 1960s.

The Misakubo Reservoir created by the dam has been stocked with carp and Japanese smelt and is a popular fishing location due to its ease of access via Japan National Route 152.