The Libby Dam Project is located in northwestern Montana, seventeen miles upstream of Libby, Montana, on the Kootenai River. It is part of the plan for development of the Columbia River Basin in the interests of flood control, power generation, recreation , and related water uses.
Libby Dam Project was authorized by the 81st Congress in 1950. In 1961 a treaty was signed with Canada relating to international cooperation in water-resource development of the Columbia River Basin. The treaty was consummated in 1964 with a formal exchange of notifications by the two Governments.
Construction of the dam required relocation of about 60 miles of Burlington Northern's main railroad line and 52 miles of Montana State Highway 37, construction of 51 miles of Forest Service roads, and relocation or adjustment of other roads, facilities, utilities, and services effected by Lake Koocanusa. The town of Rexford was moved out of the lake area. In Canada there were effected communities, roads and railroad sections too.