Studies for the project on Karun River began in the 1960s and specific designs on the Upper Gotvand were presented in 1967, 1975 and 1982.

Preliminary construction (roads, bridges, river diversion) began the same year.

After completion of the dam, impounding of its reservoir began on 30 July 2011 during a ceremony attended by Iranian President Mahmood Ahmadinejad.

Constructed from 1975 to 1977, it serves to divert portions of the river into two canals for the irrigation of 42,000 ha (100,000 acres) of farmland.

These criticisms had caused widespread concerns, and as a result, the dam's water intake had been postponed several times.