Two large dam walls hold back the 600 million cubic metres of water forming the 25 square kilometre Vau i Dejës Lake, built with Chinese help in 1973, and the first of three artificial reservoirs along the Drin river valley (further dams are at Koman and Fierza). Drive up past the town and you'll cross some hills before reaching the south shore where the lake offers boating, fishing and hiking opportunities.
The ruins of medieval Sarda, an ancient town that once strategically guarded the old Shkodra-Kosovo trade route, lie marooned on Shurdhah island in the lake. Sarda was founded in the 6th-8th century BC, and foundations of a Roman fort have been discovered here. Now you can visit the ruins of the 11th century mediaeval castle, which includes two rings of defensive walls and towers (some sadly submerged in the lake), the remains of a Byzantine church and other early mediaeval walls. The setting on the steep rocks rising from the lake is especially impressive. Excursion boats depart daily and regularly from the Sarda Island Resort in Ragam (tel. +355 68 274 22 21, 10km east of Shkodra), taking 10 minutes to reach the island. Agora Farm and Ledi's Place along the road to Koman also offer trips.