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Chasewater has a long mining history that dates back to 1849 when The Marquis of Anglesey opened the Hammerwich Colliery which was located adjacent to the toe of the dam on the Anglesey Branch canal. The rail infrastructure served the collieries around the reservoir transporting colliery products. Hammerwich Colliery last drew coal in 1857. Many other collieries were opened at this time around the reservoir and these continued to be mined until the 20th century.
When coal mining ceased in the 1960's, the site became wasteland, with pitheads and workings from local coalmines. The spoil mounds were re-shaped through extensive reclamation schemes. The grassland and heath areas surrounding the reservoir are now home to a variety of rare flora and fauna.