The purpose of the dam is to exploit the regional water and soil resources and improve agriculture. It is an earthfill dam with clay core that regulate 30x106 m3 water per annum to irrigate 4000 hectares of farmland in Leilan Chai plain and supply water right demand for 3200 hectares of farmland.

The dam site is being built on the Leilan Chai River in the southwest of East Azerbaijan province. The Leilan Chai River runs down into the Urmia Lake. The dam site is situated 23-km east of city of Malekan and 1-km upstream the village of Ghush Ghia. The dam site is at the longitude of 46o,20',40" E and the latitude of 37o,06',59" N.

The reconnaissance studies on the Leilan Chai dam project were carried out by Mahab Ghodss Consulting Engineering Company 1996 thru 1999, and the studies were approved by East Azerbaijan Regional Water Authority as client. The feasibility study began in 2001 and ended in Sep.2004.
The phase II study was conducted by Mahab Ghodss Consulting Engineering Company 2004 thru 2006. Khatamol Anbia Company was selected as the main contractor in Feb.2007 and the construction began in Jun.2007.