The Perumpallam Dam is constructed across Perumpallam, Kombupallam and Vazhaippallam which originates from the hill of Guthiyalathur Reserved forest in Kembanaickenpalayam village in Sathyamagalam Taluk of Dindigul District. Perumpallam is one of the main stream joining the Bhavani River confluence at Periakodiveri Village. Bhavani River is a tributary of Cauvery River.
By this reservoir Erode District is benefitted. Sathyamangalam taluk is benefitted by this reservoir.
The construction of dam was started during July 1984 and completed during April 1989. The reservoir was first opened for irrigation by the then Hon’ble Chief Minister of Tamil Nadu Selvi.J.Jayalalithaa on 22.01.1992.