Fontenelle Reservoir is an artificial reservoir located in southwest Wyoming. It lies almost entirely within Lincoln County, although the east end of the Fontenelle Dam and a tiny portion of the reservoir are actually in northwestern Sweetwater County. Impounded by Fontenelle Dam, the reservoir acts primarily as a storage reservoir for the U.S. Bureau of Reclamation's Colorado River Storage Project, retaining Wyoming water in the state as a means of asserting Wyoming's water rights, with a secondary purpose of power generation. Water from Fontenelle Reservoir is used in local industries such as mining and power generation.