This project is part of an integrated program of water saving measures being undertaken by the Victorian Government to create a more efficient irrigation system and increase important environmental flows in Victorian rivers.

The project consists of two main parts, the work needed to maintain a reliable water supply to water users reliant on the Lake, and the rehabilitation of the site following decommissioning of dam infrastructure and reinstatement of a more natural water regime to the area.

Victoria's water is a precious resource. Demand is increasing and there is growing recognition regarding environmental needs. Faced with low water levels in Victoria's reservoirs and predictions of less rain with climate change, the Victorian Government decided to develop a new approach to water management to secure Victoria's water resource into the future.

The Green Paper, a broad discussion paper containing 80 proposals was released in 2003. After 670 submissions and over 60 meetings with the public and peak organisations, the Government produced the Our Water, Our Future action plan, also known as the White Paper which includes 110 new initiatives to efficiently manage Victoria's water resources.

Prior to the late 1960s, the area occupied by Lake Mokoan was a wetland system consisting of two main wetlands, Winton and Green Swamps and several smaller swamps; Ashmeads, Humphries, Saddlers, Taminick, Black and Lindsays.
In 1971 the dam was built and flooding of the wetland system created Lake Mokoan, with the storage becoming operational in 1972. Lake Mokoan was originally designed to serve the Murray and Goulburn irrigation areas, however, the infrastructure needed to serve the Goulburn irrigation area was never built. The reason for this was due to ongoing concerns regarding water quality and blue-green algae outbreaks.

Indigenous History
Archaeological surveys conducted in the region indicate that Indigenous people once inhabited the wetland area. A range of heritage sites have been identified and scarred trees have also been found. A scarred tree is where the bark has been removed to make a canoe, container, shield or shelter.

It is believed that the wetland area would have once provided a reliable water source and hunting ground for Indigenous tribes. Birds, fish and shellfish would have been plentiful while plant food and traditional medicines would also have been available for gathering.

The wetlands and its surrounds would have offered good shelter and materials for making tools. A range of stone resources for flaked tools (hornfels, quartz, chalcedony and possibly silcrete and basalt) and grinding tools (sandstone and granite) would have been available. There is evidence that raw materials were brought to the area from other locations.