Based on the plans prepared for the concrete arch dam and the two power stations, construction was started in May 1912. Construction of the lower power house on the shore at the confluence of Salmon Creek with Gastineau Channel was initiated first; a transmission line was erected from here to the mines in March 1913 and the construction of the dam was started in April 1913. Construction facilities for the dam were established upstream where
aggregates (fine and coarse) were produced by crushing rocks at the crushing plant. The aggregates were mixed in designed proportions with cement and with a small admixture of lime to manufacture concrete for placing on the dam. The first batch of
concrete was placed on the dam on July 14, 1913. The dam was completed, over a 13 months period, on August 13, 1914. A concrete quantity of was placed on the dam. Concrete was placed at the rate of per day. Between 1912 and 1914, two power stations were built to utilize the water stored in the reservoir created by the dam.
The first power station, the upper powerhouse titled 'Powerhouse 2', was located below the dam and had an installation of two units of 1.5 MW capacity each operating under a
hydraulic head of . The tail waters from this power station was conveyed through a long power channel to the second power station titled 'Powerhouse 1' located on the shore of the Gastineau Channel. The power house at this location also had two units of 1.5 MW capacity each operating under a head of . Thus, the total generation from the two power stations was . In 1916, the average load on the two power stations was . Near Powerhouse 1 on the shore, office buildings, machine shops, saw mills, canteen and housing facilities for staff were also built. ==Rehabilitation==