The Lipno dam is very important for the management of water supplies and as a source of energy. It has also become a popular recreation area with many facilities for summer and winter sports.

The construction built from 1952 to 1960 works perfectly without error or break-down, and is of great help in providing electrical energy in urgent cases. The regulation of the turbo-machine is directed by central electric control.

The construction of the Lipno Dam and power plant has its historical roots in attempts to prevent the river´s descructive properties and at the same time utilize its power - in transport, using the water wheel, or water turbines. The power of the Vltava River has often showed itself in catastrophic floods before the building of the dam. Today, we are reminded of those "great waters" only by old documents, and the marks on houses and rocks, for example near Český Krumlov or Dívčí Kámen.

The Lipno Dam is a part of the Vltava cascade, and is at its highest point. It is situated in mountain terrain, on the border of Šumava National Park and Nature Reserve. The gigantic water reservoir was built between 1952 and 1959 on the upper part of the river Vltava. Its water poured over a great part of the Vltava basin with several unmined peat-bogs. The area of the main reservoir is about 4650 ha, and the volume is 306 million m3, 726 metres above sea level (when the water is at its highest point). A small part of it also extends into the Prachatice district. The small levelling reservoir (Lipno II) near Vyšší Brod, is connected to the main reservoir by an underground tunnel. At the time of its origin, the dam was an exceptional technical solution, situated in extraordinary natural conditions. It replaces several older power plants between Lipno and Vyšší Brod.