There is an existing major irrigation project on the river called the Damanganga Reservoir Project, which is located near Madhuban village in Dharampur taluka of Valsad district of Gujarat. It is an inter-state multipurpose project of the Govt. of Gujarat and Union Territory of Dadra and Nagar Haveli and Daman and Diu (DNHDD). The storage of this project is shared by the riparian state of Gujarat and Union Territory of DNHDD as the beneficiary region. The total volume of water to be shared is 516.63 MCM (million cubic metres) (420.50 MCM for irrigation and the balance 96.13 MCM for other uses, which is allotted to the riparian state and Union Territories; Gujarat has a share of 399.19 MCM, Dadra and Nagar Haveli's share is 83.33 MCM and of Daman is 34.20 MCM. The project was built from 1972 to 1998. It is a composite dam of masonry and earth-fill dams. The masonry dam of 58.6 m height with a spillway in the gorge section of the river of 350 m length; the spillway, with an ogee shape and a roller bucket for energy dissipation, is designed to rout a Probable Maximum Flood (PMF) discharge of 25,850 cumecs (cubic meters per second) controlled by 10 radial gates each of size . It has earth dams on both its flanks which measures . The composite dam is founded in area with geological formations of amygdaloidal basalt, porphyritic basalt, dolerite, and agglomerate.