The need for a long term supply of clean water was essential for the settlers to Tambo. The Barcoo River provided this supply, however there was a limit to how it could meet the growing needs of the town and stock. The Tambo Dam was built in 1880 by horse drawn scoops by the government. Although this met the town’s needs for a while but then the artesian bore was sunk in 1895. The town still relies on the Great Artesian Basin for its water supply today.
Over the years the dam has been enlarged and provides a wonderful habitat for birds. The dam when full allows for skiing and tobogganing. Locals and visitors alike enjoy the grassy areas for picnics and make use of the barbecues provided. This lovely area provides a relaxing area for walks and swimming is also a popular past time. A rest area is located adjacent to the dam.
The dam provides many spectacular sunrises reflected in the water and is bird watchers paradise with black swans and cygnets being found at certain times of the year. The pelicans also make this area home for a few weeks of the year as well. Brolgas can often be found around the waters edge.