The Thirumurthy Reservoir has been constructed across the River Palar, which has got its origin at the northern slopes of Anamalai Hills. It is a tributary of Aliyar river.
By this reservoir Coimbatore and Erode Districts are benefitted. Udumalpet and Palladam taluks are benefitted by this reservoir.
The construction of dam was started in the year 1960 and completed in the year 1967.