The arch dam was built with the primary purpose to produce hydroelectricity.

Located between Frunții Mountains and Ghițu mountains, the lake collects the Capra, Buda, and some other smaller rivers (Râul Doamnei, Cernatu, Vâlsan, Topolog, Valea lui Stan, and Limpedea), with a total flow of about 5.5 million L/s.

It required 42 km of tunnels, excavation of 1,768,000 cubic metres of hard rocks, out of which approximatively 1 million had to be extracted from underground, 930,000 cubic metres of concrete, out of which 400,000 cubic metres were underground and required the installation of 6,300 tons of electro-mechanical equipment.

The Vidraru Hydro Power Plant has an installed capacity of 220 MW.

Above the Dam, on the left bank, a sculpture by Constantin Popovici [ro] called Electricitate dominates the landscape[2].