The lake was formed by the construction of Terminus Dam on the Kaweah River. The dam was completed in 1962 by the US Army Corps of Engineers to provide flood control and water conservation. During the spring run-off season it stores 143,000 acre feet of water. Energy production was added in 1990 with the construction of the Terminus Power Plant. The new hydroelectric plant produces an average of 40 million kilowatt-hours of electricity annually, which is equivalent to 67,000 barrels of oil.
Campsites are equipped table and fire rings.
Campfire programs are presented at the Horse Creek Amphitheater on Saturday nights from Memorial Day weekend through Labor Day. The lake offers a variety of opportunities for water-skiing, sailing, and pleasure boating. Launch ramps are located in the Kaweah and Lemon Hill recreation areas. The marina at Lemon Hill offers boating and camping supplies, fishing tackle, a snack bar, boat rentals and fuel. Lake Kaweah offers both lake and stream fishing.