Phewa Lake was slightly enlarged by damming. It is in danger of silting up because of the inflow during the monsoon. The outflowing water is partially used for hydro power. The dam collapsed in the late 1970s and it was rebuilt by the Chinese. The power plant is located about 100 m below at the bottom of the Phusre Khola gorge. Water is also diverted for irrigation into the southern Pokhara valley.