Lakhya Dam is situated in Kudremukh
, a wonderland of lush green forests. This is a 100 m high dam built across Lakhya stream, a tributary of the Bhadra River
. It covers an area of 572 hectares of Shola forest valley.
The nearby railhead is Kadur (40 km). Kudremukh is well linked by road to Bangalore (350 km) and Chikmagalur.