Contest #161 answer: Lago di Lei, Swiss/Italian border

In the Valle di Lei, an Italian uninhabited valley in the Alps, lies the Lago di Lei, where the Italians constructed a hydropower dam in the years 1957-1961.

valle-di-lei

In an Italian/Swiss exchange of territory in 1962-1963, just after the completion, the dam and power station was assigned to Switserland.

I could not find more information about the backgrounds of this border rearrangement, so if anyone here can shine more light on this matter, please feel free to do so in the comments.

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