Peace Dam in Hwacheon-gun was built in response to a potential flooding attack from North Korea. The first phase of construction began in 1986, and ended in 1989; the second phase, which entailed raising the x_height of the dam, began in 2002, and ended in 2005.

Over the years, the dam has become a major tourist destination. It has several cultural and recreational facilities including the Water Culture Center, an artificial wall stream, and rest areas. It is also located close to the DMZ, and natural landmarks such as Bimok Park, Bisugumi Valley, and Suhari Fishing Site.