Water from the Canyon Dam is channelled through penstocks to the New Laxapana Power Station (blue-roofed building).
The dam creates the relatively small Canyon Reservoir, measuring at 450 m (1,480 ft) and 350 m (1,150 ft) in its longest length and width, respectively. The reservoir's primary source of water is the Maskeliya Oya, with additional water discharged from the Canyon HPower Station, located at the same site.