Due to frequent flooding and subsequent damage, the Vltava River in Southern Bohemia was problematic for Český Krumlov and other settlements situated on it. To harness the power of the river, and to prevent continued catastrophe, it was decided that a hydroelectric plant would be built high on the Vltava. Preparatory work at the town of Lipno began in 1951. Construction on the dam began in 1952, and the dam was completed in 1960.
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