Before the industrialisation of Jurong, swampy ground around Sungei Jurong and Sungei Pandan provided for the most productive prawn farming grounds in Singapore. Prawn farming sustained a number of kampongs and villagers, and continued until the mid-1960s.
In 1974, Pandan Reservoir was formed by enclosing the swamps of the Sungei Pandan estuary with an earthern dyke. Raw water from the reservoir is treated at the Choa Chu Kang Waterworks before being distributed in western Singapore. The reservoir also served as a recreation site, such as having hosted the republic of Singapore Yacht Club (RYSC) between 1966 and 1999.
Pandan Reservoir later underwent a renewal under PUB's Active, Beautiful, Clean (ABC) Waters programme, which saw the addition of water sports facilities. Today, canoeing, kayaking, rowing, sailing and sport fishing are some of the activities held there. In addition, the fringes of mangroves at the mouth of Sungei Pandan are home to a wide range of birds and sea animals.