The Chambal River raises in the Vindhya Range at an elevation of, west-southwest of the town of Mhow, near Indore. It flows north-northeast through Madhya Pradesh, runs for a time through Rajasthan, then forms the boundary between Rajasthan and Madhya Pradesh before turning southeast to join the Yamuna River in the state of Uttar Pradesh. Its total length from its source to its confluence with the Yamuna River is. The Chambal and its tributaries drain the Malwa region of northwestern Madhya Pradesh, while its tributary, the Banas, which rises in the Aravalli Range, drains southeastern Rajasthan. At its confluence with the Yamuna, the Chambal joins four other rivers – the Yamuna, Kwari, Sind, and Pahuj – at Pachnada near Bhareh in Uttar Pradesh, at the border of the Bhind and Etawah districts. The river is drained by a rain-fed catchment area with an average annual rainfall of, a temperature range of between and, and a relative humidity ranging from 30% to 90%. Between and from the Chambal's source is an area of deep gorges; the Gandhi Sagar Dam is located in the middle reach of this gorge section. The dam is situated at a distance of from the district administrative headquarters of Mandsaur.
The first stage of the development involved construction of the Gandhi Sagar Dam to a height of a as a storage dam to store 7,322,000,000 cubic metres in Madhya Pradesh and use the stored water for hydroelectric power generation, followed by irrigation from the Kota Barrage in Rajasthan, downstream of the dam. Power generation at Gandhi Sagar Dam was through a powerhouse at the toe of the dam, with a total installed capacity of 115 MW. The Kota Barrage, an earth and masonry structure in height, was built to provide irrigation through a canal system, with two main canals on the right and left banks. Construction of both projects began in 1953–54; both began functioning in 1960. The water received at the Kota Barrage is shared equally between Madhya Pradesh and Rajasthan for irrigation.
Stage II
The second stage of development involved the use of the water released from the Gandhi Sagar Dam through another dam structure, the Rana Pratap Sagar Dam, located downstream of the Gandhi Sagar at Rawatbhata in the Chittorgarh District of Rajasthan. Additional storage at this dam provides an increase in irrigation benefits from the Kota Barrage, increasing its area of irrigation from to. In addition, a powerhouse at the toe of the dam provides an additional hydroelectric power generation capacity of 172 MW from four turbo generators, of 43 MW capacity each. The second stage was completed in 1970. The power generated at the Rana Pratap Sagar Dam is shared equally with Madhya Pradesh, as the Gandhi Sagar Dam provides the stored waters for use at this dam.
Stage III
The third and final stage of development envisaged an intermediate dam between the Rana Pratap Sagar Dam and the Kota Barrage, called the Jawahar Sagar Dam. This dam is a concrete gravity dam, high, located approximately upstream of Kota Barrage to its southwest, and provides a hydroelectric power generation capacity of 99 MW, with three generator units of 33 MW capacity each. This project was commissioned in 1972.