Due to natural constraints in the Penghu region, the development of groundwater faces inherent difficulties and has already reached its limit. To resolve the issue of domestic water supply, a small reservoir was constructed in this low-lying area.
  
Xiaochi Reservoir was built as part of the Penghu Water Resource Development Ten-Year Plan(澎湖水資源開發十年實施計畫). Following the construction of Chikan Underground Reservoir and Wang'an Xi'an Reservoir, work on Xiaochi Reservoir began in February 1989 and was completed in June 1990. With a total designed storage capacity of 200,000 cubic meters, it was intended to meet the drinking water needs of residents in Xiyu Township. The reservoir was constructed in a low-lying area between Dachi and Xiaochi Villages, near a coastal bay.
It has a catchment area of 1.05 square kilometers, a normal water level of 14.2 meters, a dam crest length of 245 meters, and a dam crest elevation of 17 meters. At full capacity, it holds up to 130,000 cubic meters of water, with an annual planned supply of 293,000 cubic meters.
  
This area is a frequent habitat for egrets, making it an excellent spot for birdwatching. Behind the reservoir lies Wang'an Beach, a picturesque shoreline locally known as Dream Beach.
Recommended Duration of Visit: 30 minutes

Source: Penghu Travel