The dam was completed in 2008 and will support a 153 MW hydroelectric power station that is expected to be fully operational in 2015.

The dam was originally intended to withhold the upper reservoir of a 400 MW pumped-storage power station until a design change in 2004.

Construction on the dam started in May 2000 but by May 2004 J-Power and Chubu Electric announced they had changed the design of the project due to the concerns and protests of locals and groups.

Instead of the pumped-storage hydroelectric scheme, only the Tokuyama Dam was to be constructed with a 153-MW conventional power station.

In October of the same year, J-Power passed oversight of the power station construction to Chubu.

[1] The dam will support two Francis turbine-generators, one with a 130 MW capacity which will be located in an underground power station downstream.