B. Everett Jordan Lake is a U.S. Army Corps of Engineers' multipurpose reservoir that was constructed in 1981 and 1982. The reservoir, located mostly in Chatham County, provides low-flow augmentation, flood control, recreation, fish and wildlife habitat and water supply. The water supply storage in the lake was included at the request of the State of North Carolina and was done with the understanding that the actual users of the water would repay the Corps the costs of including the water supply storage and a portion of the annual operating and maintenance costs.

The General Statute GS 143-354(a)(11) of the State of North Carolina gives the Environmental Management Commission (EMC) the authority to allocate to local governments any water supply storage held by the State in federal reservoirs. The EMC has adopted an administrative rule requiring applicants for a water supply allocation from Jordan Lake to provide information describing their current water supply sources, projected water needs and alternative water sources. The Division of Water Resources (DWR) is responsible for analyzing the information and recommending the allocation amounts to the EMC.