It forms Khanpur Lake, a reservoir which supplies drinking water to Islamabad and Rawalpindi and irrigation water to many of the agricultural and industrial areas surrounding the cities.
The dam was completed in 1983 after a 15 year construction period believed to have cost Rs. 1,352 million. It is 167 feet (51 m) high and stores 110,000 acre feet (140,000,000 m³) of water. Khanpur lake was built by Ayub Khan , Former President of Pakistan. The dam was named after the former Khanpur village. A new Khanpur town is located in downstream of the Dam. Khanpur Lake is an ideal place where you can enjoy boating, angling and watching migratory birds during winter. Hotels are also present in texila you can also enjoy food. Khanpur Lake has also become a popular tourist destination where families and individuals can enjoy boating, go picnicking, take extended walks along the lakeshore or observe migratory birds in Winter.