Main purpose of the reservoir is to prevent floods in the Dunajec river valley. Furthermore, it attracts a growing number of tourists. The dam is equipped with a 92 megawatt power plant. The lake is located in close proximity of several popular tourist spots, such as Pieniny National Park, Niedzica Castle, Czorsztyn Castle, and the tourist village of Kluszkowce. Among villages located by Czorsztyn Lake are Niedzica, Falsztyn, Frydman, Dębno Podhalańskie, Maniowy, Kluszkowce and Czorsztyn.