The construction of the Vilarinho Dam started in 1968 and lasted for four years. In 1972, the dam and the hydraulic circuit gained their final shape. This dam is located on the Homem River, a tributary of the right bank of the Cávado River, 600 meters upstream of the confluence of the Homem River and the Ribeira de Gemesura

Vilarinho das Furnas was a village in the parish of Campo do Gerês, located in the municipality of Terras de Bouro, in the district of Braga. Since 1971, this village has been submerged by the reservoir of the Vilarinho das Furnas dam. However, when the dam is emptied for cleaning or when the water level drops in periods of drought, the houses, paths and walls of the old village can still be seen.