The 170 m (560 ft) tall dam is part of the Acheloos River Diversion which is intended to divert a portion of the Acheloos west to irrigate 240,000–380,000 ha (590,000–940,000 acres) in the Thessaly plains.

The project includes the Sykia, Messochora, Mouzaki and Pyli Dams along with a 17.4 km (10.8 mi) long channel.

The idea for the Sykia Dam and overall diversion project was first envisioned in the 1930s but a lack of funding precluded construction.

Over the next several years there was a series of legal battles that led to final construction stalling, most recently in 2005.

Supporters call on the benefit to the lucrative cotton crops it will help irrigate and the dam's planned 120 MW hydroelectric power plant.