Irrigation in drought prone Telangana has existed for a few hundred years in small areas served by locally constructed village tanks.

The Pochampadu site was located 54.50 km below the entry point of Godavari River into AP Territory (now Telangana).

The Reservoir was first filled to its fillcapacity i.e. (+)1091 ft in the year 1983.The engineers responsible for the construction were wide, among them was Mohammed Moin Ahmed (R&b) Nizamabad later in the 1980s.

The Khustapuram project proposal was first mooted/investigated by erstwhile Hyderabad state under Nizam rule to utilize 227 tmcft of upper Godavari river water.

This dam site is located in the Nizamabad district of Telangana State after the confluence of Manjira river with Godavari.

Under stage I of this project nearly 1 million acres (400,000 ha) irrigation facility is created to utilize 140 tmc water.

The flood flow canal project is also under implementation to irrigate 200,000 acres (81,000 ha) using 20 tmcft water available at Pochampadu dam site.

Also the ground water in the lower reaches of Pochampadu dam catchment area would gradually turn unsuitable for irrigation and human consumption.