The Lipno Reservoir was built on the Vltava River between 1950 and 1959. During the construction, the favourable natural environment was taken advantage of, in particular the landscape character and the fall of the Vltava. Plans for regulation and energetic exploitation of the Vltava had been produced since the end of the 19th century. The Lipno Hydroelectric Power Plant was constructed as the fourth oldest reservoir of the Vltava Cascade, being the first one counted downstream. Lipno is the largest water surface in the Czech Republic, which is of essential economic importance: it is a water reservoir, constitutes protection against floods, is an important source for the generation of power and forms an attractive environment for recreation and the development of tourism.
The reservoir was built in two parts: Lipno I – the main reservoir, and Lipno II further down stream – the equalising reservoir. The power plant is located in an artificial cave 171 metres under ground. The generation of power is provided by two Francis turbines and the spill water flows through a 3.6 km long underground discharge tunnel to the equalising reservoir, which houses a Kaplan turbine. It is possible to visit the power plant.