Nalcor Energy says water has seeped from a temporary cofferdam at the site of the Muskrat Falls hydroelectric project in Labrador.
In a statement today, the company said "increased water seepage" was noticed at the cofferdam and inspected by an engineering team.
It recommended that water levels be reduced to reduce risks of having increased flow and to safeguard the cofferdam.
Nalcor Energy said it lowered the water levels in the reservoir by opening the spillway gates, which increased water levels downstream of the Muskrat Falls project.
It says there is no risk of flooding in the surrounding communities.
It planned to inspect the dam once reservoir levels went down.