The dam and auxiliary reservoir Lipno II were built on the west outskirts of the small town Vyšší Brod on the Vltava river.
It is used for equalizing water from the main dam - Lipno Dam. It takes water from the power station in the Lipno Dam and during its highest flow rate the resevoir works for restraining overflows and then it discharges water to the river.
The dam is the lower part of the hydroengineering structure containing also the main and bigger upper Lipno Dam. The dam was built in the 1960's from soil and concrete. It is 11.5 m high and 224 m long. The power station with one Kaplan turbine (adjustable-blade-type turbine) is installed in this dam. It works continuously. The reservoir is 2 km long and its area is 45 ha.