The Aliyar dam was constructed across Aliyar River which is rising in the Anaimalai hills in Valparai Taluk of Coimbatore District, Tamil Nadu after flowing along the slopes of the Western-Ghats in a north westerly direction for about 22.5km then joins the Kannadi river and finally joins the Bhrathaphuzha river which flows into the Arabian Sea.
Aliyar dam is a part of Parambikulam Aliyar Project which would act as a balancing reservoir to receive surplus waters through Aliyar Feeder Canal diverted from Nirar, Sholayar and Parambikulam Basin (From Power House).
By this reservoir Coimbatore District is benefitted. Pollachi Taluk is benefitted by this reservoir.
The construction of dam was started in the year 1959 and completed in the year 1969.