Due to the problem of repetitive flood every year in Phitsanulok Province and nearby provinces particularly in the area of Thung San, Phrom Phiram District, Phitsanulok Province where agricultural areas over 95,000 rai have been flooded. In 1965 His Majesty King Bhumibol had initiated the Project of Water Supply and Maintenance of Naresuan Dam. The diversion dam which stores water from Nan River discharged from Sirikit Dam can solve the problem of flood in Thung San area 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 Naresuan Dam therefore began in 1965 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 and Queen Sirikit accompanied by Her Royal Highness Princess Maha Chakri Sirindhorn and Her Royal Highness Princess Soamsawali performed the opening ceremony on February 25, 1982.