The Serpentine Dam, together with the Edgar Dam and the Scotts Peak Dam, are three major dams that form the headwaters for the Gordon River Power Development Scheme. The dam is located near Lake Pedder's most northwesterly point where the Serpentine River descends from the Frankland Range into what is now known as the Pedder Reach. At the southern end of the Lake Pedder, the Scotts Peak Dam impounds the upper reaches of the Huon River. The Edgar Dam forms a saddle dam at Lake Pedder's most easterly point. The water in Lake Pedder provides around 40% of the water used in the Gordon Power Station. The water flows to Lake Gordon via McPartlan Canal. Water from Lake Gordon then exits through the Gordon Power Station releasing via the tailrace into the Gordon River.