For a dam to make sense, there needs to be a source of water like a river or creek. Without water, it would just be a wall.
Build a wall inside that river and across it. That pools up the water behind that wall until it rises and spills over. This wall is the dam.
The water on the other side CAN dry up but most of the time, the dams are built with pipes (gates) which allow the dam operator to release a steady stream of water. As long as the river supplying the water and the release from the gates are equal, the water level behind the dam remains constant and there will still be water down stream.
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