Osman sagar was created by damming the Musi River in 1920, for providing drinking water source for Hyderabad, and also saving the city from floods, on the lines of which Hyderabad suffered in 1908. It was during the reign of The LastNizam of Hyderabad, Osman Ali Khan, hence the name.
A princely guest house called Sagar Mahal, overlooking the lake, now a heritage building, was built as a summer resort of the last Nizam. It is located on the banks and has the best view of the lake. Andhra Pradesh Tourism Department, currently, runs the place as a resort. The breeze of the lake is very pleasant, and has been popular with the locals since The Nizam's time.
It is a popular tourist destination, especially after the rainy season when the reservoir is full, and its parks, resorts, amusement park are a major attraction. This lake had served drinking water for Hyderabad city but due to increase in population it is not sufficient for water supply to Hyderabad city and so now it is used for public recreation.
In June this year (2012), the water level at Osmansagar was 1769.8 feet. On October 1(2012), the water level there was 1771.8 feet, an increase of a mere 2 feet. Similarly, in Himayatsagar, the water level in June(2012) was 1743.3 feet and on October 1(2012), it was 1,747.4 feet, an increase of about 4 feet. In October 2011, the water levels at Osmansagar and Himayatsagar were 1781.9 feet and 1754.9 feet respectively.
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