Original wooden dam was started in 1881 and finished in 1884. It was replaced with a concrete dam in 1899-1900. A 12-foot log sluice and a 5-foot fish ladder was added in 1912. These additions are no longer in use. The bridge was added in 1909, and rebuilt in 1990.

This was the first major reservoir built on the Mississippi River. The US Army Corps of Engineers report that this was built as a resource that would benefit the entire nation. Water released from northern reservoirs would help making the shipping season more predictable and much safer. Today, the dam is used to keep the lake at a constant level of 1,297 feet above sea level. The shipping lanes are managed by downstream locks and dams, leaving the lake available for recreational purposes.

The lake is 67,000 acres, with about 140 miles of shoreline. Unlike lakes in the Brainerd Lakes area, Winnibigoshish remains mostly undeveloped. As the fifth largest lake in Minnesota, it is considered to be the crown jewel for fishing, and some of the best walleye fishing in the world. One key to the excellent fish habitat is that this lake is located on a major river, which keeps the lake flushed clean.