DeGray lake and dam were authorized by Congress in the River and Harbor Act of 1950. Congress passed the Water Supply Act of 1958, which provided for the inclusion of municipal and industrial water supply as one of the project purposes. Construction on the dam began in 1962 and was completed in 1972 at a cost of $63,800,000. A 40 MW hydraulic turbine and a 28 MW turbine generate electricity for the Southwestern Power Administration of Arkansas, Texas, and Oklahoma. DeGray dam impounds the waters of the Caddo River to form a flood control lake that covers , and a shoreline of .