The environmental impact of reservoirs comes under ever increasing scrutiny as the global demand for water and energy increases and the number and size of reservoirs increases.
Dams and reservoirs can be used to supply drinking water, generate hydroelectric power, increase the water supply for irrigation, provide recreational opportunities, and flood control. However, adverse environmental and sociological impacts have been identified during and after many reservoir constructions. Whether reservoir projects are ultimately beneficial or detrimental to either the environment or surrounding human populations has been debated since the 1960s and likely before then, as well. In 1960 the construction of Llyn Celyn and the flooding of Capel Celyn provoked political uproar which continues to this day. More recently, the construction of Three Gorges Dam and other similar projects throughout Asia, Africa and Latin America have generated considerable environmental and political debate.
A dam also acts as a barrier between the upstream and downstream movement of migratory river animals, such as salmon and trout.
Some communities have also begun the practice of transporting migratory fish upstream to spawn via a barge.
Rivers carry sediment down their riverbeds, allowing for the formation of depositional features such as river deltas, alluvial fans, braided rivers, oxbow lakes, levees and coastal shores. The construction of a dam blocks the flow of sediment downstream, leading to downstream erosion of these Sedimentary depositional environments, and increased sediment build-up in the reservoir. While the rate of sedimentation varies for each dam and each river, eventually all reservoirs develop a reduced water-storage capacity due to the exchange of storage space for sediment. Diminished storage capacity results in decreased ability to produce hydroelectric power, reduced availability of water for irrigation, and if left unaddressed, may ultimately result in the expiration of the dam and river.