The Upper River Derwent hydroelectric scheme was developed at a time in 1934 when the former Hydro-Electric Commission had only two working power stations.

[3] Ticklebelly Flat, the nickname for the married quarters at Tarraleah Camp number 2 in the 1930s, is a name for the history of Hydro Tasmania by Heather Fenton, known as Ticklebelly Tales.

[4] Part of the Derwent scheme that now comprises eleven hydroelectric power stations, the Tarraleah Power Station is located aboveground on the west bank of the Nive River downstream from the village of Tarraleah and a short distance from the Lyell Highway.

Water from the concrete arched Clark Dam across the River Derwent that forms Lake King William flows from the lake and also from the Butlers Gorge Power Station around 25 kilometres (16 mi) via the Tarraleah Canals.

[5][6][7] The power station was opened in July 1938[8][9][10][11] and has six Pelton-type turbines, with a generating capacity of 90 megawatts (120,000 hp) of electricity.