Formerly a dormitory for the Taiwan Power Co. 's engineers building a power plant close to the Teh Chi Dam, the villa only recently took on its present aspect.
德基山莊的前身，原是台灣電力公司興建德基電廠工程人員的宿舍，是以木材搭建的日式建築，座落在德基水庫南方，大壩的東南方，是眺望整個大壩的最佳地點。