The history of water supply in Penang - dates back to 1804 when water was sourced from the waterfall in the Penang Botanic Garden. It was supplied via a long brick aqueduct & distributed through earthenware pipes that were laid through the streets. Invariably, more water was needed, so the Waterfall Reservoir, the 1st reservoir on the island, was completed in 1894, & another one in Air Itam in 1914.
A universal water metering system was introduced in 1900, & a municipal water department was established in 1919 headed by Mr.J. D. Fettes, a water engineer. His most notable achievement was the development of water resources on the north side of the island where a 7km tunnel pipeline was built. It brought water from the streams of the Batu Ferringi Valley to the Guillemard Reservoir behind Tanjung Bungah. It was completed in 1929, & Penangs first water treatment plant at Air Itam began also began its operation in 1929.
Other dams & reservoirs have been built over the years. The Bukit Dumbar Reservoir at Jelutong, which has been converted to a recreation park, was built in 1958. The Air Itam Dam, Penangs first dam, was officially opened in 1962. In 1973 , the states water authority - PBA, was established to serve both the island & the mainland portion of the state. (It was privatized in 1999.) The authority subsequently initiated a water scheme which included construction of a barrage, a pumping station, another treatment plant, & a submarine (underwater) pipeline.
Penangs 2nd dam, the large Mengkuang Dam on the mainland, was officially opened in 1985. It has almost 10 times the capacity of the Air Itam Dam. Penangs 3rd dam, the Teluk Bahang Dam, was completed in 1999, & its capacity is about 8 times that of the Air Itam Dam. The Teluk Bahang dam incorporates a recreational area for locals & tourists. In fact, the annual International Dragon Boat festival has been held here since 2002. It is located less than half a kilometer south of Teluk Bahang overlooking the Butterfly Farm. Today, most of Penangs water comes from Sungai Muda (sungai = river) in Kedah, on the mainland.
More info here: http://www.pba.com.my/PBAHis.html

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