In the fall of 1905, Anton Gerig with a crew of eleven men, constructed the reservoir on Slate Creek, west of Grasshopper Valley and north of Eagle Lake. On April 12, 1934, Lena A. Soldate sold the Slate Creek Reservoir, along with considerable acreage in Grasshopper Valley, to George R. Heath for $26,000. On either May 7th or 8th 1938, spring floods caused the collapse of the dam at Slate Creek. California Department of Water Resources had repeatedly informed Heath that the Slate Creek Reservoir required a spillway, but their warning was ignored. During the aftermath of the dam failure, the State Engineer stated that had an adequate spillway been constructed at an estimated cost of $5,100 the dam would have withstood the spring flood. The dam was subsequently rebuilt and became known as Heath Reservoir.

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