The Zhonghe area was originally inhabited by indigenous people. It wasn't until the 6th year of Qianlong (1741) when people from Fujian and Guangdong came to Taiwan to cultivate and settle, and the first records of Han Chinese villages appeared. In 1895, after Japan took control of Taiwan, in order to improve water quality and meet the demands of coal washing and processing at the "Sanbu Coal Mine" in the nearby area, construction on the Banqiao Waterworks began in 1928 and was completed the following year. The Ruixiang Distribution Reservoir, built on high ground in Ruixiang, was created in 1929 as a junction for water supply and distribution. Following the construction of the Banqiao Railway Station, the area rapidly developed, attracting a large influx of people. The Japanese authorities planned to expand the Banqiao Waterworks in 1941, but the plan was halted due to the outbreak of the Pacific War.
After Taiwan's retrocession, the waterworks system was damaged during the war, leading to a sharp reduction in water supply. The government planned to repair and expand the system. During the renovation process, the original waterworks system from the Japanese colonial period was gradually dismantled. In 1963, water from the Xindian River was tapped, gradually replacing groundwater sources. By 1974, the surface water from the Dahan River was adopted as the water source, completing the modern Banqiao tap water system. The use of groundwater sources for water supply was completely phased out. Among the waterworks relics left behind from the Japanese colonial period, the Ruixiang Distribution Reservoir is the best-preserved.
The reservoir played a role in supplying water from the Japanese colonial era. Its water source originated from the water outlet on what is now the Yonghe Water Source Road and connected the development of two areas. It is a significant relic in the development of modern waterworks.