The section of the Paint River where the dam is now located was once a series of falls and rapids that gave Crystal Falls its name.[2] However, in 1891, the village of Crystal Falls constructed the Crystal Falls dam and power plant, effectively submerging the rapids.[2][3] They were leased to C.T. Roberts from 1891 to 1896, after which the village took over management of the plant.[3] In 1902-1903, a new power plant was constructed.[4] The plant was expanded in 1907, and new generators were installed in 1914 and 1924.[4] The plant was expanded several times; however, the output could not keep up with demand, and starting in 1929, Crystal Falls purchased supplemental power from the Wisconsin Energy Corporation.[3]
After 1929, the power plant and dam were upgraded multiple times, including a 1931 installation of a new concrete dam installed containing the rollway and tainter gates and a 1996 resurfacing of the spillway.[4] The Crystal Falls Power Plant is still operational, and is likely the oldest hydro-electric plant still in operation in the Upper Peninsula.[3] It provides roughly 1/3 of the power demanded by the residents of Crystal Falls.[2]