The Wheao and Flaxy scheme had its beginnings in 1974, with the scheme being commissioned in 1982.

Using water from the Rangitaiki River, supplemented with water from the Wheao River and Flaxy Creek, the scheme uses two generators at the Wheao Powerhouse delivering 12 MW each, with a further 2.1 MW of generation from a single induction generator at the Flaxy Powerhouse. Average yearly production from the scheme is 111 GWh.
 

The Rangitaiki Canal provides an excellent recreational fishery, and the scheme provides easy access to a fishing ground in the Rangitaiki Canal. A Weed Management Strategy is currently being developed to maintain the fishing grounds in the canal, without inhibiting the flow of water to the station.

Existing Resource Consents for the scheme expire in 2026. Extensive trout monitoring of the Wheao River has culminated in eight years of investigations indicating the scheme has caused no negative effect on the trout population in the Wheao River.