Due to the repetitive floods occurring every year in Phitsanulok Province and nearby provinces, particularly in the area of Thung San, Phrom Phiram District, Phitsanulok Province where agricultural areas of over 95,000 rai have been flooded. In 1975, His Majesty King Bhumibol Adulyadej The Great initiated the Project of Water Supply and Maintenance of Naresuan Dam. The diversion dam which stores water from the Nan River discharged from Sirikit Dam can solve floods in Thung San and surrounding areas. The dam can store water for use in the dry season and is also the water source for irrigation and agriculture.               

The construction of the Naresuan Dam began in 1975 at Ban Haad Yai, Moo 7, Phrom Phiram Sub-district, Phrom Phiram District, Phitsanulok Province, and was completed in 1982. Later, their Majesties King Bhumibol Adulyadej The Great and Queen Sirikit The Queen Mother, accompanied by Her Royal Highness Princess Maha Chakri Sirindhorn and Her Royal Highness Princess Soamsawali, performed the opening ceremony on February 25, 1982.