Danjera Dam is located approximately 20 kilometres west of Nowra on the New South Wales south coast, near the locality of Yalwal. It is one of the largest buttress-type dams in Australia, with a surface area of 90 hectares, an average depth of 15 metres, and a greatest depth of 30 metres. The dam's capacity is 7,800 megalitres. It was constructed in 1971, flooding the former gold-mining town of Yalwal in 1972.

The dam is well suited to kayaking and canoeing. No internal combustion motors are permitted on the water; only electric motors, paddle power, and sail are allowed. This restriction keeps the water calm and free of boat wakes, making it particularly practical for kayak fishing and general paddling. The launching area is located near the dam wall and involves a steep bank, which makes it more manageable for canoes and kayaks than for larger vessels such as small tinnies.

The submerged history of the site adds an unusual dimension to paddling here. The old gold-mining town of Yalwal — which once included a school, pubs, banks, a post office, and a general store — lies beneath the water. Dead trees protrude above the surface, remnants of the flooding. Old mine tunnel entrances are visible in the dam walls, and monument rocks bearing names etched by original residents can be found in the surrounding area. A graveyard from the former settlement also remains in the vicinity.

Fishing is a common activity on the dam, with Australian bass, rainbow trout, and eels present. Both bass and rainbow trout are stocked, with restocking carried out by Shoalhaven City Council and the Southern Bass Fishing Club.

Camping is permitted in designated areas only. Facilities at the two picnic and camping areas include toilets, barbecues, firewood (though bringing your own is advisable), non-potable water, and bins. A ranger is on site. The dam is roughly a 30-minute drive from Nowra, and hotel and motel accommodation is available in that town for those not camping. Nearby bush walking trails are also accessible from the recreation area.