The northern shoreline of the reservoir is the lowest point in the state of New Mexico.

The reservoir was formed in 1936 by the construction of a dam by the Red Bluff Water Control District to provide water for irrigation and hydroelectric power.

With an elevation of 2,842 feet [866 m] above sea level, it is the lowest point in New Mexico.

Red Bluff Reservoir has been stocked with species of fish intended to improve the utility of the reservoir for recreational fishing and swimming.

Vegetation in the lake includes sago pondweed.