The dam is located on the western end of Pipeclay Terrace, south side of Pipeclay Gully. Between Smith's and Pipeclay Gully.

On 26 Jun 1874, the Cromwell Argus reported that the Carrick Range Water Supply Company had let a tender for the construction of a dam and hut between Smith's and Pipeclay Gullies. The tender was let to a local Chinese by the name of May Hoy. It is not clear who worked for Hoy.

On 20 Oct, the Argus reported that the dam was complete. Ridlands map of 1890 shows a number of dams on Pipeclay Terrace, between Smith's and Pipeclay Gullies. The only dam that may have taken 5 months to construct is the largest, Tippett's Dam. It also has what may be a hut shown next to it. The dates on the licence for Tippett's Dam are very close to those of the Argus.

The Carrick Range Water Supply Company was in a serious financial position. The water race had been completed from Coal Creek to Menzies Terrace, by using all of it's own money plus a large government mortgage. There was less water being supplied and the entire race was in poor condition.

It appears that the Carrick Range Water Supply Company may have decided to seel their large dam on Pipeclay Terrace. On 11 Apr it appears that David Anderson Jolly (store owner and investor of Cromwell) and Charles Tippett (1) (miner) purchased the dam. At the time of the sale a fourth share was allocated to William Talboys (draper and investor of Cromwell). Jacob Crow (miner) appears to have been allocated 2/12 shares, mortgaged to W Talboys.