The Kakkayam Dam was commissioned in 1973 as part of the Kuttiadi Hydro Electric Project. Its primary purpose was to harness the hydroelectric potential of the Kuttiadi River to generate electricity for the region. The project involved the construction of the dam and a power station to convert the water's energy into electricity. The dam's construction significantly impacted the local ecosystem and communities, leading to the displacement of some residents. However, it also brought economic benefits to the region through job creation and improved infrastructure. Over the years, the dam has become an important source of power for Kerala and has also evolved into a popular tourist destination, attracting visitors with its scenic beauty and recreational opportunities.