Bully Creek Dam is located on Bully Creek about 8 miles northwest of the creek's confluence with the Malheur River, and 9 miles northwest of Vale, Oregon. The dam is a zoned earthfill structure with a crest length of 3,070 feet and total height of 121 feet. The reservoir has a total capacity of 24,400 acre-feet (active 23,700 acre-feet).
Bully Creek Dam is located in the western part of Snake River Plain Physiographic Province. The plain is an arcuate depression that extends from eastern Oregon across southern Idaho and into western Wyoming. It contains great amounts of late Cenozoic silicic and basaltic volcanic products and interbedded late Cenozoic sediments. The region is highly dissected by streams owing to its relatively weak bedrock surface. Locally, rocks outcropping in the area are generally Miocene and younger in age. They include volcanics, graben deposits, western Snake River Plain deposits of the Idaho Group, and Quanternary deposits.