The dam was constructed by the Army Corps of Engineers for commercial navigation purposes to serve the city of Augusta, located approximately 13 miles (21 km) upstream.

[1] In 1999 the Corps of Engineers proposed demolishing and removing the dam, but local outcry over the resulting impact to users of the impounded pool resulted in the United States Congress declaring in 2000 that the dam would be repaired and then turned over to a local government to be maintained, however the work never received funding.

Allowing fish passage upriver of the New Savannah Bluff dam to historic spawning grounds was identified as a mitigation to this damage.

As of June 2018[update], the Army Corps presented five alternatives to allow fish passage and expects to select a plan in 2019 and begin construction in 2021.

[3] The dam serves water supply users including one municipality, five industries, and one sod farm; water-related recreation opportunities such as general boating and fishing and specialized rowing and powerboat race events; and regional economic development and tourism.