The power station was commissioned in 1999, and was developed in line with principles of environmentally sustainable development. Its location in Lake Koombooloomba in Far North Queensland's Wet Tropics World Heritage Area finally put into use infrastructure established when the dam was constructed in 1960. The original dam design allowed an outlet for use by future hydroelectric development. This outlet has been used to release water for Stanwell's Kareeya Hydroelectric Power Station. The water from Lake Koombooloomba is what makes white water rafting on the Tully River possible all year round.