In 1900, Bayless Paper chose to construct a paper mill in the Freeman Run Valley. By 1909, the company realized that occasional dry seasons required a more reliable water source. After finding a small earthen dam to be inadequate, the T. Chalkey Hatton firm built a large concrete dam across the valley. The dam was 50 feet (15 m) high, 540 feet (160 m) long and cost $86,000 to construct.[1] It was designed to be thirty feet thick, but was built only twenty feet thick.[2]

Within only a few months of its completion, problems were detected. The dam bowed more than 36 feet (11 m) under the pressure of the water it was holding and the concrete started cracking. The bowing was alleviated by using dynamite to blast a 13-foot (4.0 m) space for the excess water to spill over. The cracking was claimed to be normal because of the drying cement.