The Murguma Dam is constructed on the Saharajhore River, one of the tributary of Kangsabati River in West Bengal, India. The dam is constructed near Murguma village in the foothill of Ajodhya Hills, Purulia District. It's under Kotshila Police Station. A number of other streams also flow into the dam directly from Ajodhya Hills. The dam is surrounded by hills, forests and a number of small islands within it. The place is situated at the north west end of Ajodhya Hills which is considered as an eastern extension of Chota Nagpur Plateau.