Constructed in 1970 for the water supply to the Yavatmal city. Drinking water was plenty enough for the city that system could provide 24 hours water supply to the city. It worked for about 8 years. Developing areas around the city had a more demand than capacity od Nilona Dam. Recently this system has been supplimented by another augmentation from Chapdoh Dam down stream of Nilona Dam. A succesful experimentation was done on Nilona water for evaporation control by chemical spreading for five consecutive years during drought period for Yavatmal city.
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