It is a multipurpose dam, but its most important function is flood control, which 170,000 acre-feet (210,000,000 m3) of the reservoir's capacity is dedicated to.

Some water is released at the base of the dam so that the streambed is not completely dewatered upstream of the New Colgate Powerhouse tailrace.

Water Ski Magazine rates Bullards Bar Reservoir as one of the best recreational lakes in the United States.

The trails are maintained by the USFS Yuba Ranger District and volunteers from Bicyclists of Nevada County or.

The California Office of Environmental Health Hazard Assessment (OEHHA) has developed a safe eating advisory for fish caught in New Bullards Bar Reservoir based on their levels of mercury or PCBs.