Many of Michigan’s dams were constructed nearly a century ago, including a significant number built in the 1930s under the Civilian Conservation Corps, part of President Franklin D. Roosevelt’s effort to create jobs and expand public infrastructure.
At the time, dams powered industry, controlled water flow, and created inland lakes that reshaped local economies.
Nearly a century later, many of those same structures remain in service — often far beyond their original design life.
A Statewide Infrastructure Risk
Michigan has more than 2,500 dams, many now classified as being in poor condition or carrying a “high hazard” designation — meaning their failure could result in significant property damage or loss of life.
The risk is not theoretical.
In 2020, the failure of dams in Midland County led to one of the largest inland flooding disasters in state history, forcing thousands of residents to evacuate and causing hundreds of millions of dollars in damage.
The Funding Gap
Fixing or removing aging dams is expensive — often costing millions per structure — and responsibility is fragmented across a mix of private owners, utilities, and local governments.
That creates a persistent problem: many dam owners simply do not have the financial capacity to maintain or upgrade them.
State lawmakers have acknowledged the issue, but funding to date has fallen far short of what engineers and infrastructure experts say is needed.
More Than Infrastructure: An Economic Lifeline
For many rural communities, dams are not just aging infrastructure — they are central to local economies.
In counties like Newaygo County, dams along the Muskegon River — including the Hardy Dam and Croton Dam — create reservoirs that support boating, fishing, camping, and tourism.
Those activities drive revenue for campgrounds, marinas, restaurants, and small businesses — making dams an economic anchor in many parts of the state.
Losing those reservoirs would not just change the landscape — it could significantly impact local economies.
The Consumers Energy Signal
The challenge is becoming even clearer as major asset owners reassess their role.
Utility giant Consumers Energy is seeking to sell 13 hydroelectric dams for as little as $1 each — a move that would transfer long-term maintenance responsibilities and liability to new owners.
The proposal reflects a broader shift: when maintaining aging infrastructure no longer makes economic sense, owners may look to exit.
But the risk does not disappear.
Instead, it shifts — often to local communities, taxpayers, or emergency response systems when something goes wrong.
A System at a Crossroads
Infrastructure experts say Michigan is entering a period of transition, as decades-old systems reach the end of their useful life at the same time.
That leaves the state facing a difficult set of choices:
- Which dams are worth saving
- Which should be removed
- And who will pay for either option
Without a coordinated strategy, the risks — and the costs — are likely to grow.
A Series: Michigan’s Dam Dilemma
This story is part of an ongoing MITechNews series examining the future of Michigan’s dam infrastructure, including:
- Who pays to fix Michigan’s dams?
A deeper look at funding gaps, state programs, and the growing financial burden on local communities
- Save them or remove them?
The difficult trade-offs between safety, cost, environmental impact, and economic value
- The rural economy behind the reservoirs
How dams support tourism, property values, and small businesses across Michigan
- From the 1930s to today
How aging infrastructure built during the New Deal era is colliding with modern climate and budget realities
- Ownership, liability, and risk
What happens when dam owners walk away — and who is left responsible
What Comes Next
The Cheboygan situation may have ended without disaster, but it serves as a warning.
Michigan’s dam problem is no longer a distant or abstract issue.
It is a growing infrastructure challenge with real implications for public safety, local economies, and taxpayers across the state.
And as more dams age — and more owners look for a way out — the question is becoming harder to ignore:
Who is going to fix them?