Caballo Lake a rest stop during their travels, and eagles are often seen in the area. Caballo Lake is named for the Caballo Mountains that border the lake to the northeast, east, and southeast, in which wild horses roamed; Caballo means "horse" in Spanish. The upper area of the lake is very shallow and in recent years has been blocked from the lower, deeper end of the lake. The water has a slightly brownish hue from a distance, due to the shallow waters (usually about at the deepest point). The beaches of Caballo are rocky when compared to Elephant Butte Reservoir, but
Caballo Dam Caballo Dam Caballo Dam is an earthen dam on the Rio Grande about downstream from Truth or Consequences, New Mexico, United States. In conjunction with Elephant Butte Dam, which lies about upstream, it regulates the discharge of the river in the lower Rio Grande Valley of New Mexico. Caballo serves as an afterbay for the Elephant Butte Reservoir, i.e. it stores water released from Elephant Butte for hydroelectricity generation purposes and discharges it in the dry season to provide for irrigation agriculture downstream. The dam is an important part of the Rio Grande Project. A secondary purpose of the dam