Sardinia is one of the Italian regions with the greatest number of dams per inhabitants, almost 60 for a population of only 1.5 million people. Many of these dam sites are located on non-carbonate rocks along the main rivers of the Island and their waters are used for irrigation, industrial, energy supply, drinking and flood regulation purposes. The Pedra 'e Othoni dam on the Cedrino river (Dorgali, Central-East Sardinia) is located along the threshold of the Palaeozoic basement on the Northern border of the Supramonte karst area, where water is forced to flow out of the system through several resurgences, the most famous of which is the Su Gologone vauclusian spring, used for drinking water supply. The other main outflows of the system, Su Tippari and San Pantaleo springs, are at present almost permanently submerged by the high water level of the Pedra 'e Othoni dam. In the near future water will be supplied also to other communities with a possible increase of water taken from the spring. The dam, originally meant to regulate the flooding of Cedrino river but actually used for all sorts of purposes (electricity supply, drinking water, irrigation of farmlands, industrial uses), has a maximum regulation altitude of 103 m a.s.l., only slightly less than a meter below the Su Gologone spring level (103.7 m), and 4 and 9 m respectively above the submerged Su Tippari and San Pantaleo springs. During floods of the Cedrino river, occurring on average twice a year, also the Su Gologone spring becomes submerged by the muddy waters of the lake for a time ranging between a couple of hours up to several days, making water supply impossible. The analysis of the available meteorological and hydrogeological data relative to the December 2004 flood, one of the severest of the past 100 years, suggests that the reservoir is filled in a few days time. Several flooding scenarios have been reconstructed using digital terrain models, showing that backflooding submerges most of the discharge area of the aquifer, having important repercussions also on the inland underground drainage system. The upstream flood prone areas prevalently comprise agricultural lands with some sparse houses, but also highly frequented tourist facilities. Fortunately flooding occurs outside the tourist season, thus limiting risk to a limited number of local inhabitants. Massive discharge at the dam site, instead, determines a more hazardous situation in the Cedrino coastal plain, where population density in low lying areas is much higher. To avoid flooding hazard upstream the water level in the lake should be regulated, keeping it low in the flood prone seasons, and having it filled from the end of the winter in order to have enough water stocked before the beginning of the summer. Discharge at the dam site, instead, should be done cautiously, preventing severe flooding of the coastal Cedrino plain.