The reservoir on the river Sutlej, was formed after the hydel dam at Bhakra was constructed and has been named in honour of Guru Gobind Singh, the tenth Sikh guru. One of the world's highest gravity dams, the Bhakra dam rises nearly 225.5 m above its lowest foundations. Under the supervision of the American dam-builder, Harvey Slocum, work began in the year of 1955 and was completed in 1962. To maintain the level of water, the flow of river Beas was channelized to Gobind Sagar by the Beas-Sutlej link which was accompalished in 1976.
In October and November, when the water level of the reservoir is high, a series of regattas are also organised by the Tourism and Civil Aviation department. Water-skiing, sailing, kayaking and water scooter racing are popular water sports activities during this period.Major attractions of the lake include ferry rides and water sports like speedboating.
Gobind Sagar was declared as a water fowl refuge in 1962. Fishing is commonly practiced here. It has about fifty one species and sub species. Labeo dero, Tor pitutrata, Mystus seenghala and Mirror carp are some of the common species found here.