During the construction parts of six villages were demolished and subsequently flooded. The village of Karlovec was completely flooded and ceased to exist. Today only Saint John Nepomucen Church and several other abandoned buildings remain at the reservoir's shore. Villages of Dlouhá Stráň, Nová Pláň, Razová, Roudno and Leskovec nad Moravicí were also partially flooded and are today located on the shore of the reservoir.
The dam is used mainly to generate electricity, supply drinking water to nearby towns and villages and to subdue floods on the Moravice River.