The Knife Falls Dam on the north side of Cloquet was developed at the same time as the Scanlon Dam a few miles downstream. Like the Scanlon Dam, this is also considered to be a small hydro project with an electrical output of 2.4-megawatts. The Knife Falls Dam is also owned and operated by Minnesota Power.

The dam is located at the site of a natural rapids in the river. River rapids are common in this area where the St. Louis River plunges from an elevation of 1,200 feet on top of the bluffs down to Lake Superior at an elevation of 602 feet. The St. Louis River has two channels in this location. The main channel is on the south channel. It consists of a 1,644 foot wide reinforced concrete and steel structure. The structure is sitting on piles driven into the rock at the rapids. The dam depends on its weight to hold it in place on these pilings. The north channel is much narrower and requires a very short dam.

The downstream side of the dam is blocked off by the Sappi Paper Mill, which is the former Potlatch Mill. The north side of the river is blocked off by chain link fences, making a view from that side all but impossible. The view in these photos were taken from an industrial road on the south side of the river that leads to the back gate at the Sappi mill.