In the past, the Northeastern part of Thailand usually faces the drought problem. Water source development plays an important role for the people in this region. Realizing the benefit to the local people, “Nam Phung Dam”, a project of Lower Mekong Basin Development Project, was constructed. Nam Phung Dam will alleviate the flood in the rainy season by storing water in its reservoir and will discharge water into irrigation areas of Sakon Nakhon and Nakhon Phanon provinces in the dry season. In addition to the benefit for agriculture, the dam generates electricity to strengthen efficiency of the power system in the region and is one of the beautiful tourist attractions in Sakon Nakhon Province.

Nam Phung Dam is the first multipurpose dam in the Northeast of the country. The construction began in February 1964 and was completed in October 1965. On 14 November 1965, the dam was officially opened by His Majesty King Bhumibol. The dam was handed over by the National Energy Authority to the Northeast Electricity Authority (NEA) and subsequently to EGAT up to now. At present, Nam Phung Dam has the contractual generating capacity of 6 MW.