The Drăgan (or Floroiu) dam is an artificial dam, completed in 1987, which allows the retention of the waters of the Drăgan and Sebeșel rivers, being located immediately downstream of the confluence of the two rivers.

The lake water is used for electricity generation, flood mitigation and irrigation. The concrete dam, in the arch, has a height of 120 m, and the length of the crown is 424 m. The reservoir, under normal conditions, has an area of ​​292 hectares and 112 million cubic meters of water.

Activities that can be done on Lake Drăgan include boating, fishing, camping, mountain hiking, observing the local flora and fauna.