Kanhargaov Reservoir is located in Chhindwara district near the southern boundary of the province of Madhya Pradesh, Central India. The district is well known for its coal mines which have been producing coal during the past half century. This area is hilly with undulating topography, belonging to Mahadeo Range of Saptura Mountains and reaching a height range of 1,000 1,500 m above sea level both to the north and in the southern part of the district.

The reservoir, the largest one in the district, was constructed in 1986 at a cost of 14 million rupees by impounding the River Kulbehra which is a tributary of the Pench River (in the Godavari River system) originating from the central plateau of the district. The dam site is at a distance of 25 km from Chhindwara town, and the reservoir serves as the main source of drinking water for the town.