Penny Lane Dam is located on the Animas River just east of Farmington Lake. This low-head dam was constructed in 1984 to pump water from the Animas to Lake Farmington. The dam had the unintended consequence of stopping fish from traveling upstream as well as creating dangerous hydraulic conditions for rafters which resulted in several deaths. In 2013 The River Reach Foundation partnered with the City of Farmington to address these safety concerns.

Construction began in 2015 and the project was completed in 2017. The final project resulted in two safe passage options for boaters and rafters to choose from, a safety cableway, and the addition of a fish ladder that will allow fish to pass upstream of the dam.