[3][4] The two autonomous entities formed the Sabine River Compact,[5] a memorandum of agreement, approved by the Legislatures of the States of Texas (1953) and Louisiana (1954), The U.S. Congress, and the President.

These organizations and the compact were a result of efforts that began with the Sabine River Watershed Association of Texas after World War II as well as citizens from Louisiana, to create a freshwater supply, that included hydroelectric power, as well as providing recreation.

The Massman-Johnson Construction Company served as the general contractor, and by the completion of the project in 1969 (56 years ago) (1969), Texas' estimated share of the funds was $70 million.

[8] Beginning in May 1963, land acquisitions for Toledo Bend Reservoir started as a joint management project of Texas and Louisiana River Authorities.

The Toledo Bend Project was constructed primarily for the purposes of water supply, hydroelectric power generation, and recreation.

In Sabine Parish, there were several communities that included houses and other buildings such as schools and churches predominantly poor and minority, that were inundated.

Toledo Bend is the nation's only public water conservation and hydroelectric power project to be undertaken without federal participation in its permanent financing.