Villa El Chocón arises with the construction of the Hydroelectric power plant on the river Limay in 1967. This plant and Cerros Colorados are the most important ones in Argentina.
The characteristic landscape with plateaux, bardas, and cliffs, plus the diversity of red colors on the layers, were the framework of a growing town on the northern margin of the embankment. Some temporary and other permanent houses were built during work, and on 31st October, 1975, Townhall had its first government. In 1993, the Villa was transferred.
The city has a surface of 6000 hectares, from which, 100 correspond to the ex permanent village.
The main economic activity is the generation of energy by the dam and embankment, then tourism, since the Paleontologigal Heritage has awakened the interest of numerous scientists and common visitors from all over the planet, and then agriculture. At present the city has a population of 500 inhabitants.
The dam was built in stone, tuff, sand and earth. It is 86 metres high, 2500 metres long, and 380 metres wide at the base. The 6 turbines in the embankment called Ramos Mejía have a capacity to generate 1.200.000 Kw.