The artificial lake was created with the construction of the dam in 1966, nearby Gracanica.
The Gracanica Lake is located at 4.5 km away from center of Gracanica. The Lake is made due to more regular water supply of Gracanica and surrounding areas. Stocked with variety of fish species, for fisherman represents a real paradise. When maximum water level, reaches 3.5 km length, 500 m wide, the maximum water depth of the lake is about 30 meters and its capacity reaches 28 million cubic meters of water.