The Waterbury Dam was built between 1935 and1938 by 2,000 men working for the Corps of Engineers, United States Army, to serve as one of three dams to control the flow of Little River, Vermont, Winooski River and its tributaries.

In 1927, flood waters from the Winooski River killed over 55 people and caused an estimated $13,000,000 in damage.

The 1,845 feet (562 m) long dam is filled with 2,200,000 cubic yards (1,700,000 m3) of material, including 3,490 cubic yards (2,668 m3) of clay in its center portion.

The dam was modified in 1957 and 1958 to provide for increased security.

The dam and the reservoir it creates, the Waterbury Reservoir, are located in the town of Waterbury in northwestern Washington County.