It is situated on the river Arda, and is created behind the Studen Kladenets dam, 30 km south-east of the town of Kardzhali.

The dam is operated by the Bulgarian National Electric Company, NEK EAD.

The top of the dam consists of nine spillways, each one being 10.5 by 5 m. "Studen Kladenets" Hydroelectric Power Plant is situated appr.

Studen Kladenets reservoir is an attractive place for fishermen, where rudd is caught in great numbers.

The development of the reservoir has caused the local ecology to become artificially wetter and more humid, reducing the variety of types of land cover.