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The sustainability of large dams has been questioned on several grounds. One aspect that has been less explored is that the development of dams and reservoirs often enables agricultural expansion and urban growth, which in turn increase water consumption. As such, dam development influences, while being influenced by, the spatial and temporal distribution of both supply and demand of water resources. In this paper, we explore the interplay between large dams, patterns of population growth and agricultural expansion in the United States over the past two centuries. Based on a large-scale analysis of spatial and temporal trends, we identify three distinct phases, in which different processes dominated the interplay. Then, we focus on agricultural water use in the Southwest region (Arizona, California and Nevada) and explore chicken-and-egg dynamics where water supply partly meets and partly fuels water demand. Lastly, we show that the legacy of dams in the United States consists of a lock-in condition characterized by high levels of water consumption, especially in the Southwest, which leads to severe water crises and groundwater overexploitation when droughts occur. [ABSTRACT FROM AUTHOR]