A rapid increase in electricity demand at the end of World War II led to Parliamentary approval, in 1947, of a scheme to develop the catchment areas of the Nive and Dee Rivers north of Tarraleah. Both rivers are tributaries of the Derwent River.
The western, or Nive River, part of the scheme was started first. The Pine Tier Dam was built across the Nive River just below its junction with the Pine River. The dam diverts waters via the Bronte Canal into Bronte Lagoon. The canal also collects water pumped from Serpentine Creek. Another source of water, from Laughing Jack lagoon and the Clarence River, is provided by the Clarence Pipeline. It takes water down across the Nive River and up into Bronte Lagoon.
Bronte Lagoon is the first of four small storages created by building low rockfill dams at the edges of former marshlands. Unlined canals connect each storage. Water flows from Bronte Lagoon through Bradys Lake, Lake Binney and Tungatinah Lagoon. A short tunnel takes water from Tungatinah Lagoon to steel penstocks and a 300 metre drop down into the Tungatinah Power Station in the valley of the Nive River.
The eastern, or Dee River, part of the scheme also feeds water to the Tungatinah Power Station. A rockfill dam was constructed across the headwaters of the Dee River and raised the level of Lake Echo by nearly 15 metres. This has created a usable storage of about 500 million cubic metres. Diversions of the Little Pine and Ouse Rivers feed extra supplies of water into Lake Echo via the Monpeelyata Canal. Further south another rockfill dam across the Dee River forms Dee Lagoon.
Water from Lake Echo flows via a flume and canal before falling 170 metres through a steel penstock to the Lake Echo Power Station on the edge of Dee Lagoon. Lake Echo Power Station was commissioned in 1956 and has a capacity of 32.4 MW.
Water from Dee Lagoon is sent in a westerly direction through a tunnel to Bradys Lake. It joins with water coming from Bonte Lagoon and then flows through Lake Binny, Tungatinah Lagoon and Tungatinah Power Station.
The five 25 MW generators at Tungatinah were commissioned between 1953 and 1956.