Otter falls is located nearby the Otter Falls Cutoff. The Falls were featured on the back of the 1954 series Canadian Five Dollar bills. Somehow the Otter Falls found itself on the back of the Five Dollar Bill.
Water flows over Otter Falls have been affected by the development of the Aishihik Hydroelectric Project which was commissioned in 1975. Water from Canyon, Aishihik and Sekulmun Lakes is now routed through a 5.6 km canal which parallels the west side of the East Aishihik River. Water from the canal drops 174 metres through a pressure shaft and tunnel to generate electricity in a 30 megawatt underground power house. The water then leaves the plant through a 1463 metre tail race tunnel and joins the West Aishihik River downstream from the falls. This rerouting of water for use in hydroelectric generation has reduced the level of flow in the upper portion of the East Aishihik river where both Otter Falls and Rainbow Falls are located. During summer months water passes over the falls at a minimum rate of 25 cubic fee per second. During winter months, the flow over the falls is reduced or cut off. In years when storage levels in the lakes have reached their maximum, higher flows of waters are spilled over Otter Falls.