The domestic water power plant was created in connection with the drinking water pipeline, which was erected by VERBUND-Austrian Hydro Power AG for the locality of Kolbnitz in the municipality of Reißeck. The locality had hitherto been supplied by stream water. After the authorisation process in 2004, construction was carried out by Alpine Mayereder from June until November 2005 and followed a plan by VERBUND-Austrian Hydro Power AG with project manager Gert Köfeler and civil engineer Josef Vierbauch. Assembly of the technical equipment and the commissioning took place from November until December 2005.
The spring in the area of the Mühldorf Graben, the entire piping system and the power plant buildings were handed over by VERBUND-Austrian Hydro Power AG to the municipality of Kolbnitz, which is to take care of the maintenance of the building. Electricity production plants are the property of VERBUND-Austrian Hydro Power AG; usage rights have been regulated between VERBUND-Austrian Hydro Power AG and the municipality of Kolbnitz in accordance with private law.