The Victoria reservoir and dam was constructed then Victoria Waterfalls under the Accelerated Mahaweli Development Program (AMDP). The project had been in planning for 30 years but was accelerated in 1977 government to address economic difficulties within the country.

The well known Victoria dam located 209 km upstream of the Mahaweli River's mouth and 4 6 km from the city of Teldeniya in Kandy district. The purposes are irrigation, hydroelectric power production, replace people from highly populated dry zone from wet zone, their infrastructure development, fishing, tourism, etc.

The plan is designed to irrigate 365,000 ha (901,935 acres) of land and provide 600 MW of electricity. Construction of the dam was inaugurated on 14 August 1978 and implementation of the main structures beginning in 1980. The opening ceremony was with former British prime minister Lady Margaret Thacher on the 12 April 1985 .

There are two sides from Theldeniya or Adhikarigama to enter to visit the Victoria dam but only the Theldeniya side open for tourists. The breathtaking spilling view will be will be great. When the water levels up the dam bend 153cm outwards. And it has 16 levels plus 8 spillways.