The Lam Nang Rong Dam is one of the water source development projects under royal initiation. It is under the responsibility of the Lam Nang Rong Operation and Maintenance Project, Irrigation Office 8, Royal Irrigation Department. The project originated from the problem caused by communist insurgents in the area who tried to interrupt the building of the Lahn Sai – Ta Phraya Road. After the fighting intensified from 1977, the peoples' living conditions deteriorated; they were not able to earn a living outside the villages and had to cluster together in the village of Ban Non Din Daeng in suffering conditions. When His Majesty the King leant of the problem, he suggested the development of the Lam Nang Rong basin to improve peoples’ livelihood. The Royal Irrigation Department was asked to construct Lam Nang Rong Dam, Klong Manao Reservoir, Lam Patia Reservoir and Lam Changhan Reservior including an irrigation system and small reservoirs in many villages.
Lam Nang Rong Dam was completed between 1980 and 1982 and the irrigation system built subsequently between 1985 and 1991. The nearby area of the dam was also developed with the creation of a beautiful sand beach which offers a scenic view which became known as ‘Lam Nang Rong Beach – the Lake of Southern Isan’.