The Penjalin Reservoir is one of the remnants of the Dutch colonial government located in Winduaji Village. In the course of historical development, rehabilitation was carried out in 2018. Thus, this study is interested in discussing the issues related to this research: firstly, the history of the Penjalin Reservoir in Paguyangan in 1930. Secondly, the functions of the reservoir for the community's life in the Paguyangan District from 2017 to 2022. Thirdly, the impacts of the rehabilitation on the socio-economic condition of the reservoir community from 2018 to 2021. This research aims to describe the history of the Penjalin Reservoir, understand its functions, and analyze the impacts of its rehabilitation. The research method used in this study is historical research method consisting of four phases: 1. Heuristics (phase of searching and collecting data), 2. Verification which is divided into two parts: external criticism (authentication of sources) and internal criticism (credibility of historical sources), 3. Interpretation which involves interpreting and composing, 4. Historiography which is the phase of writing history. The results of this research prove that the Penjalin Reservoir is one of the architectural remnants from the Dutch colonial era. This reservoir is not only used for irrigation but also utilized in various sectors, especially tourism, with the construction of the iconic Penjalin Reservoir tower that is a distinctive feature of tourism in the area. The rehabilitation carried out in 2018 involved several improvements, particularly on the dam's structure, etc.