History:
Nizamsagar dam was constructed in 1923 by the rulers of the erstwhile Hyderabad State, Mir Osman Ali Khan. It was made by emptying over 40 villages.This masonry dam sprawling across the river for 3 km with a fourteen feet wide motorable road over it. There are excellent boarding and lodging facilities nearby, for tourists.
Before Nizam Sagar was built, the Manjira River was not properly harnessed and little water was being used by diverting water at Ghanpur Anicut for Irrigating about 5,000 acres and an open Channel called Mahaboob Nagar (Right Canal) in Medak District. The Ghanpur Anicut was the first scheme constructed across Manjira river in 1904 at a cost of Rs.18.00 Lakhs. Some years later, Nawab Ali Nawaj Jung Bahadur as Superintending Engineer added Fatch Nahar ( Left canal ) to increase the utility of the river later. The ayacut of 17,308 acres was being irrigated under this Ghanpur Anicut which subsequently increased to 30,000 acres as per actuals.
Nizam sagar Project is the second irrigation scheme on Manjira river and the largest in the then Hyderabad state taken up during the year 1923 and completed by the year 1931. This Project was originally contemplated for utilization of 58.00 TMC of water to irrigate 2,75,000 acres in Banswada, Bodhan, Nizamabad and Armoor Taluks of Nizamabad District. After reorganization of States in 1956, the Manjira basin got distributed among the three states viz., Maharashtra, Karnataka and Telangana.