This reservoir is mainly used for irrigation purpose. The water supply from this dam meets the drinking as well as the irrigation purpose of the whole Kannur district. This Project was commisioned by Ex: Prime Minister Late: Mr. Moraji Desai in the yaer of 1979.
Pazhassi Dam, an ideal retreat for tourists, the dam site is famous for its scenic beauty. The Kannur District Tourism Promotion Council boats are available to navigate through the river enjoying the silent beauty of Pazhassi dam. It is the only reservoir with gardens in Kannur district. The garden is a good attraction with sculptures. The added attractions of the place are the gardens and children's park. The Buddha's mountain at Pazhassi and the sculpture of Pazhassi King are visual delights.