Valley Lake, also known as Brushy Creek Reservoir, is on Brushy Creek, a tributary to the Red River, in the Red River Basin three miles north of Savoy in Fannin County (centered at 33°37' N, 96°22' W). The lake extends into Grayson County. The project is owned and operated by the Texas Power and Light Company for the purpose of condenser cooling and other power plant uses for its Valley Creek steam-electric generating station. Construction of Valley Dam was started on April 18, 1960, and completed on September 5, 1961. The lake has a capacity of 16,800 acre-feet and a surface area of 1,180 acres at the service spillway crest elevation of 610 feet above mean sea level. The drainage area is eight square miles, but it is unimportant because the water level in the reservoir is maintained by the diversion of water from the Red River by two pumps installed in the plant at the mouth of Sand Creek.