The Anaimaduvu Reservoir is constructed across Anaimaduvu river at the foot of the Kalrayan hills. Anaimaduvu river is one of the major tributary of Vasista River also called as upper vellar which confluences into vellar River at Tholudur Regulator. Then the Vellar River drains into Bay of Bengal at Port Nova near Chidambaram in Cuddalore District.
This reservoir benefits Salem District. Salem taluk is benefitted by this reservoir.
The construction of dam was started in the year 1982 and completed in the year 1993.