Its purpose is to improve the accumulation of water stocks in the upper part of Peru's Chira basin by flood control, irrigation, drainage and electricity generation.

It is located on 4° 3' southern latitude and 80° 2' western longitude at an altitude of 98 m in the Lancones district of the province of Sullana, approximately 30 km from the border with Ecuador.

The system was built in support of agrarian reform and infrastructure policies led by the military dictatorship of Juan Velasco Alvarado.

The original design brief was to revitalise the Piura valley, which was short of water, and provide modern irrigation for approximately 350 km2 of arable land.

The Poechos I power house has 15.4 MW in installed capacity and generates 60 GW·h annually for Electronoroeste, the concessionary for energy distribution in northwestern Peru.