[2] While the dam was built primarily for flood storage, a generator was installed at Nottely in the 1950s, giving it a small hydroelectric output.

[1][2] The dam utilizes a concrete intake tower (connected via footbridge to the mainland), where water is diverted into a tunnel and carried downstream.

Nottely Lake has a flood storage capacity of 61,588 acre-feet (75,968,000 m3), 4,180 acres (16.9 km2) of water surface, and 106 miles (171 km) of shoreline.

The outbreak of World War II in Europe in 1941 brought an emergency demand for electricity, which was needed to power aluminum production operations in East Tennessee.

The dam was initially built solely for flood storage, but was designed so that a generator could easily be added should the need for one arise.

The dam was built as quickly as possible in hopes of allowing its reservoir ample time to fill during the rainy winter months.

Since Nottely's reservoir would fill slowly and create mosquito-breeding environments, various precautions were taken to prevent malaria outbreaks.