The Gwydir River was regulated in the late 1970s with the construction of Copeton Dam. The dam is located west of Inverell, approximately 90 km downstream of the Gwydir River headwaters and upstream of the township of Bingara on the north west slopes of NSW.

Copeton Dam is one of the largest inland dams in NSW with a capacity of 1,364,000 megalitres of water. The construction of the dam was initiated to provide more reliable town water supplies and to boost agricultural production through the provision of river irrigation water in the Gwydir Valley.  It provides reliable town water for Inverell via a pipeline and other towns downstream, including Bingara, Gravesend and Weemelah.

Copeton Dam has a active release capacity of 11,000 megaltires per day but the spill way is designed to allow for 1,280,000 mealtires if required.

In 2013 dam safety upgrades have also required the construction of fuse plugs, which divert floodwaters around the dam in an extreme rainfall event to protect the dam infrastructure .