The Mengkuang Dam, the biggest dam in Penang, has a storage capacity of 23,639 million litres of water. Mengkuang Dam not only provide water for the state and surrounding areas, it is also a splendid recreational spot featuring landscaped gardens, and sitting benches along the perimeter of the dam. It also has facilities for both recreational and watersports like jogging tracks and walking trails. The dam area is often used by the locals for their morning and late afternoon jogging, and upon arrangement with the authority in charge of the dam, one can also enjoy kayaking here.

Close by is the 37ha Bukit Mertajam Recreational Forest, forming a majestic backdrop for the dam. Uphill trails in the area attract mountain bikers for the rewarding views from atop, including the majestic view of Mengkuang Dam.

Mengkuang Dam is also one of the venues for the annual Penang International Dragon Boat Festival. A lively afffair, the festival is a fiesta of colour and noise, in which traditionally-built boats race through the waters of this dam, the boats are cheered on by enthusiastic spectators. The race begins with a slow beating of the drums by the helmsmen. The beat increases steadily, going faster and faster, and then rising to a crescendo as the boats cross the finish line. The ornate and beautifully painted 'dragons' on the boats' prows add to the gaiety of the festival.