The Upper Yarra Reservoir is located east of Melbourne, beyond Warburton within the locality of Reefton. Water from Upper Yarra Reservoir supplies towns in the upper Yarra Valley, and Silvan Reservoir, which transfers water to most parts of Melbourne.Upper Yarra Reservoir has a capacity of 200,000 megalitres (million litres) and was completed in 1957, initially for the purpose of preventing flooding downstream. In 1888, the Upper Yarra catchment was permanently reserved for water supply purposes.
Approval to construct Upper Yarra Reservoir was granted in the early 1940s but due to World War II work did not start until 1948. When the Upper Yarra Reservoir was completed the total storage capacity of Melbourne's system was tripled to nearly 300,000 megalitres.Upper Yarra Reservoir is also supplied by water transferred from the Thomson River Dam.