Throughout the service life, underground structures are subjected to transient and sustained hydrostatic pressures. The reservoir impoundment results in an increase in water level, as well as hydraulic gradient, which can endanger the uplift performance of infrastructure. In uplift design, a reduction factor is often suggested for buoyant force acting on underground structures in clays due to the time lag effect. However, the mechanism of pore pressure generation in clays is not fully understood. This investigation presents a novel U-shaped test chamber to assess the pore pressure generation with time in the horizontal branch subjected to an increase in reservoir level in the left vertical branch. A mathematical model is developed to explain the time lag effect of pore pressure generation. The test program also involves the evaluation of uplift pressure acting on foundation model in the right vertical branch due to adjacent reservoir impoundment. It is found that the time lag effect of pore pressure generation in clays can be observed irrespective of hydraulic gradient, but a higher hydraulic gradient can lead to a faster response in pore pressure sensors. A reduction factor of 0.84–0.87 should be considered to reduce the conservatism of uplift design.