Muleshoe Dam is owned and operated by Hollidaysbourg Borough Authority. The reservoir is part of the drinking water supply network serving Hollidaysbourg, Pennsylvania.

A dam assessment revealed serious stability problems in the embankment and also that the spillway was incapable of discharging the revised design flood.

The dam owner decided to rehabilitate the earthfill embankment and to lower the main spillway crest, while maintaining the top of the crest at its original level by installing fusegates.