Previous studies had identified environmental problems related to a proposed run-of-river hydroelectric generating station on the Saskatchewan River close to the town of Nipawin. In a joint venture, Hatch Energy carried out extensive subsurface investigations in order to find a solution to the complex foundation conditions in the region.

Briefly, the foundations for the new structure consisted of surficial water bearing deposits, low-strength glacial tills and bedrock, overlying a sandstone aquifer with high artesian pressures. To reduce pore pressures on the bedrock, which consisted largely of clay shale, a drainage tunnel 1.4 km in length, with lateral and vertical drains, was constructed beneath the dam and powerhouse. Deep wells were also drilled