Construction of the dam on the Teplá River was initiated by the town of Karlovy Vary after disastrous floods in 1890. The dam was realized in 1931-1935. It was the first gravitation concrete dam in Bohemia. In the middle of the 1980’s a hydroelectric power station was built.
The primary purpose of the dam is protection of the town of Karlovy Vary against floods, ensuring minimum flow in the profile of the water-flow recorder at Březová - discharge, and ensuring periodical flush of the riverbed below the dam.
The secondary purpose of the dam was electric power generation, regulated trout fish breeding, flow regulation below the dam of the Březová Waterworks for the organization of canoe races, and the execution of the Fishery Laws.