Since the highly developed agricultural area could not be sustained without storage of the late summer water supply, the settlers requested that the Bureau of Reclamation investigate building a new dam. On the basis of their studies, Reclamation began work on the project in May 1938. The primary purpose of the project is agriculture. Construction Reclamation completed construction of the new dam in time for stored water to be delivered to project lands for the 1939 irrigation season. The project provides supplemental irrigation for nearly 2,700 acres of land.
Principal crops are fruit, small grains, corn, alfalfa, and pasture.
When full, Fruitgrowers Reservoir has a surface area of 476 acres. The reservoir is a major migration stop and nesting site for a variety of shorebirds and waterfowl.