In August 1954, a severe flood transformed the landscape of Gejiu, a city historically shaped by tin mining. Due to the reversal of underground karst drainage systems near Laoyin Mountain, accumulated water and mountain floods inundated the low-lying urban area, affecting factories, residential areas, and public facilities. Following the disaster, the local government decided to retain the floodwater and construct a reservoir, turning a crisis into an opportunity for urban development.

Thousands of workers, including miners, local residents, and construction teams, participated in the six-month project. By October 1955, a 1,000-meter-long dam had been completed at the foot of Laoyin Mountain, creating a highland lake of approximately 0.8 square kilometers. The newly formed lake was named Jinhu, reflecting Gejiu’s connection with the metal industry and its aspirations for future development.

Over time, the lakeside area developed from a flood-control project into a central public landscape of Gejiu City. Roads, green spaces, recreational facilities, and cultural spaces were gradually established around the lake, transforming Jinhu into an important urban environment integrating natural scenery, public life, and industrial memory. Today, Gejiu Jinhu Park represents the city's transition from a traditional mining center to a modern urban landscape, preserving the relationship between ecological improvement, industrial heritage, and community life.