Blue River Lake is a project of the U.S. Army Corps of Engineers and is located about 38 miles east of Eugene on the Blue River, a tributary of the McKenzie River. The dam is a rockfill structure with gated concrete spillway. The project is operated with Cougar Lake to control the McKenzie River and the Willamette River downstream. The dam was completed in 1969 at a cost of $32 million.

The project's recreation facilities, all within the Willamette National Forest, are managed by the U.S.D.A. Forest Service - Oregon. The scenic 1240-acre lake, with its many miles of forested shoreline, provides many opportunities for outdoor recreation. Overnight camping is available at Mona Campground and boat launch facilities are provided at Saddle Dam and Lookout Creek ramps. Fishing, swimming, and water skiing, are also available at the two recreation areas, near the upper end of the lake. It is not far from another Corps project, Cougar Lake.