Building anything behind a dam is a risky business. If the dam breaks, one is underwater, a situation that is generally not helpful to clothing, structures, furniture, one's gee-gaws, or, unless one is a merperson, one's health.
Still, in the quest for land, sometimes people accept these risks. It appears that Steelhead Boomtown has done so, and perhaps at their peril. One of their dams seems to have developed a serious crack problem. (Insert OOC wink here.)
A large encampment of the Steelhead Consortium of Scientific Endeavors is on hand, presumably to monitor the problem.
They may have been wise, however, to bring an airship.