Grahamstown Dam is immediately adjacent to residential areas in the town of Raymond Terrace, less than from the Raymond Terrace CBD. Commenced in 1955, completed in 1965, and commissioned in 1969, Grahamstown Dam is a major dam that receives its main inflow from the Williams River as well as its own catchment. Water flows into the Grahamstown Dam from the Williams River, upstream from the Weir, which limits the inflow of tidal seawater; via Balickera Canal and pumping station, which are used to transfer water from the Williams River to Grahamstown Dam. The Pumping Station; George Schroder Pumping Station and delivery mains are used to deliver water from the dam to the water treatment plant; and Grahamstown Water Treatment Plant. The storage was formed by building an embankment across the outlet of a natural depression known as the Grahamstown Moors. Construction began in 1955, and although all the elements of the entire scheme were not completed until 1965, water was first supplied in 1960 during the severe drought from 1960 to 1963. The dam was built by the NSW Water Conservation and Irrigation Commission on behalf of the Hunter Water Corporation to supply water to the Hunter Region. The dam wall consists of of earthfill with an internal earth core. It is high and long. At 100% capacity the dam wall holds back of water. The surface area of Grahamstown Lake is and the catchment area is a relatively small. The controlled labyrinth spillway is capable of discharging.
Upgrade of facilities
Since the dam was completed, major modifications include:
1973: a bentonite clay core in length was installed in the central section of the embankment to provide a watertight seal, the thick core has an average depth of ;
1985: the Full Supply Level of the dam was reduced from to as a temporary measure to reduce the risk of damage to the main embankment from major flooding;
1994: further work was undertaken to raise the level of the clay core to road level over the full length of the embankment and rock armouring of the main embankment was also undertaken; and
2005: the Full Supply Level was increased to and provided 50 per cent more storage capacity by constructing a spillway northeast of Raymond Terrace and a new discharge channel under the Pacific Highway.