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Yes.

A town in Wales called Capel Celyn was emptied of its population and flooded, on purpose, in order to form a reservoir.

The remains of that town are now underwater in the reservoir.

It was a controversial move because the village was the only surviving Welsh village that spoke entirely in the Welsh language (untouched by the English language). However, the natural location made it ideal for a reservoir, which can support millions of people with fresh water.

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Q: Is there a town under a Welsh reservoir?
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