The South Tobacco Creek (STC) watershed was part of a land grant made to Lord Selkirk from the Hudson's Bay Company in 1811 intended for agricultural settlement. In 1870 Manitoba joined Confederation shortly after guidelines for surveying & homesteading were set out.

As settlement and land demands increased, the heavier forested woodlands of natural oak and poplar on the Pembina Escarpment were cleared and the sloughs drained. As communities expanded, development of mining and lumbering continued throughout the area. The impact of access roads, land clearing, drainage and the straightening of water courses produced increased runoff. This accelerated the natural processes of erosion, gullying, sedimentation and flooding on the escarpment watershed. As time progressed, so did the activities enhancing the negative impacts on the natural escarpment watershed. In the 1960's to the early 1980's the Federal and Provincial governments were requested by the local Rural Municipality of Thompson to undertake a study to and propose methods to alleviate the problems of erosion, siltation and flooding on the STC Watershed. As a result of the study numerous ditches and dikes were established alleviating some of the localized problems.

Another proposal called for the construction of a single large dam at the toe of the Escarpment to reduce peak flow rates. This structure was never built. During the early 1960's the R.M. of Thompson constructed two small dams on the North Tobacco Creek. The ability of small dams to reduce the immediate downstream flooding became evident to the local residents.

In 1985 a number of local farmers on the escarpment established a grassroots organization called Deerwood Soil & Water Management Association (DSWMA). The Association applied for and received funding under a Federal and Provincial Soil Conservation Agreement. This enabled the organization to address farmer's concerns with soil and water management. DSWMA currently serves an area of 378 sq. miles (979 sq. km) promoting and assisting farmers in soil and water management. Activities include residue management, zero tillage, shelterbelt establishment, rotational grazing, gully stabilization, grassed waterways, small dam construction and wildlife habitat enhancement. In 1991 the Association entered into an agreement with the Federal and Provincial government to implement the South Tobacco Creek Pilot Project. 

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