The Penobscot River Local Protection Project is located on the Penobscot Indian Reservation, more commonly known as Indian Island, along the Penobscot River in Old Town. Indian Island is about 14 miles northeast of Bangor.

The project provides flood protection to 4.5 acres of low-lying land on the southern end of Indian Island. This area is the oldest developed area of the island, and it includes several homes, a church, a general store, the Indian Agent Office Building, and a cemetery.

Construction took place between May-November 1976 at a cost of $188,000. It was built under Section 205 of the Continuing Authorities Program, and is operated and maintained by the Penobscot Tribe.

The project involved modifying two earthfill dikes that were constructed as temporary flood protection in 1971. The dikes are located on the east and west banks of Indian Island, a short distance beyond the access road bridge. Modifications included raising the height of the dikes by three feet, and constructing stone slope protection. The east dike is 708 feet long, and the west dike is 581 feet long. Work also included improving interior drainage facilities.