It was constructed by John Frederick Bateman between 1849 and June 1855 as part of the Longdendale Chain of reservoirs to supply water from the River Etherow to the urban areas of Greater Manchester.

On the night of 6 February 1852, 30 acres (120,000 m2) of land beneath the contractors' village of New Yarmouth moved 6 inches (150 mm) obliquely to the watercourse.

The water now flows directly to the Arnfield Treatment Works in Tintwistle and to the Mottram Tunnel.

Woodhead as the fountainhead would have the most extensive improvements, and with these completed there was no danger at Rhodeswood of overtopping; however, there was weakness in the north spillway.

To reduce the pressure, the roadway was consolidated to protect the north spillway from erosion, the embankment was raised by 40 millimetres (1.6 in) above the road, the wave wall was heightened by 1.2 m (3 ft 11 in) and the south spillway tunnel was remodelled.