The preliminary works of Hub Dam, built across the River Hub, were commenced in September, 1963 and completed in June, 1981. The project was meant to construct a storage reservoir for regulating the flows of Hub River for the purpose of municipal, industrial water supply and irrigation releases to Karachi in Sindh and Lasbela District in Balochistan. The Hub Dam is an inter-provincial Project as the beneficiaries are located in the two Provinces Sindh and Balochistan. The capital cost of the project is Rs. 1191.806 million (excluding interest charges).
The total live storage of the reservoir 656,000 AF (Acre ft.) is about 2 times planned for annual withdrawal of 216,406 AF, considering Reservoir Losses (Evaporation / Seepage, 35% on average). Normally, the impounding of reservoir takes place during monsoon season. The Project is designed to supply 100 MGD (Million gallon per day) of water to Karachi (Sindh) for municipal and industrial purposes, and 15 MGD to the Balochistan industries besides irrigation of 21,000 Acres (CCA),i.e. 44 MGD, in Balochistan and 1000 acres i.e. 2 MGD in Sindh. Thus, the reservoir-release of 216,406 AF is shared by Sindh 63.3% and by Balochistan 36.7%. This supply is ensured for a period of 75 years.