Lake Oroville was created when Oroville Dam was constructed. It is the tallest earthen dam in the United States, at 770 feet high and 6,920 feet across. Tailings from the gold dredging era make up most of the material used the construction of the dam. Beneath the dam, a cavern as large as the state capitol building houses six power generating units. Coupled with the four units in the Thermolito Power Plant, they generate more than 2.8 billion kilowatt-hours of power annually.

In the early 20th century the Western Pacific Railroad completed construction of the all-weather Feather River Canyon route through the Sierra Nevadas giving it the nickname of "The Feather River Route". Oroville would serve as an important stop for the famous California Zephyr during its 20 year run. In 1983, this became a part of the Union Pacific Railroad as their Feather River Canyon Subdivision. A major highway, State Route 70, roughly parallels the railroad line through the canyon.