Blue River Dam is located on a tributary of the McKenzie River about 38 miles east of Eugene, Ore. It is a rockfill structure with gated concrete spillways that was completed in 1969 at a cost of $32 million. Blue River Dam is a rockfill structure with a gated concrete spillway. Since its construction, the dam has prevented an estimated $375 million in potential flood damages. The reservoir provides 85,000 acre-feet of storage and controls runoff from an 88-square-mile drainage area. At full pool, the lake's surface area is 940 acres.
Blue River Dam works in coordination with Cougar Dam to provide flood risk management, and also provides water quality improvement, irrigation, fish and wildlife habitat and recreation.