The Neustadt dam (Nordhäuser Talsperre) is the dam with the oldest dam wall in Thuringia. It is used to supply Nordhausen with drinking water. The dam was built in 1904-1905 in the immediate vicinity of Neustadt and raised by 5 m in 1922-1923. The dammed body of water is the Krebsbach. The dam is operated by Thüringer Fernwasserversorgung; the water is supplied to the Nordhausen water association.

Swimming and recreational sports in the reservoir are not possible, but you can hike around the reservoir.

The dam wall was renovated between 1997 and 2001 and was reinforced, sealed with asphalt concrete on the water side, an inspection corridor and underground sealing.

Various hiking trails are marked out around the dam. The dam wall has been faithfully restored in accordance with monument protection regulations, including the parapet on the wall. According to current safety precautions, this is too low, so walkers and hikers are not allowed to cross the wall.