The Varattupallam Dam is constructed across the three streams Varattupallam, Kumparavanipallam and Kallupallam which originates from the western ghat near vargur forest area and confluence with Bhavani River near Aappakudal village OF Erode District.
By this reservoir Erode District is benefitted. Bhavani taluk is benefitted by this reservoir.
The Foundation stone for the construction of the reservoir was laid by the then Hon’ble Chief Minister of Tamil Nadu Thiru. M.Karananidhi on 31.08.1974. The construction was completed in the year 1980. The reservoir was inaugurated and the water was first released by the then Hon’ble Minister for Irrigation Thiru.P.Kulandaivelu on 28.01.1980.