The Gunderipallam Dam was constructed at the foot of the hill of Sathyamangalam Reserved forest of Western Ghats across a jungle stream called Gunderipallam in Kongerpalayam Village of Gobichettipalayam Taluk in Erode District. Gunderipallam stream finally confluences with River Bhavani river near Kalliankadu of Erode District which will fall in Cauvery River.
By this reservoir Erode District is benefitted. Gobichettipalayam taluk is benefitted by this reservoir.
The Foundation stone for the construction of Gunderipallam 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 1978. The reservoir was inaugurated and the water was first released by the then Hon’ble Chief Minister of Tamil Nadu Thiru.M.G.Ramachandran on 28.01.1980.