The construction began on the dam in 1974, and ended four years later in 1981. When the reservoir began in 1980, leakage was discovered downstream. The leakage is due to a karst foundation. The foundation was grouted from 1983 until 1989 with no success. With the population growth occurring in Amol, there was a need for more water and energy. The ideal place for the dam was over the Lar river, in the northeast section of the city, at the elevated heights of the Kalanbasteh mountain on the slope of Mount Damavand. The area is called Polour, and operations began in 1984.