I got a good tutorial to create volume-elevation curve from digital elevation model (DEM) using ArcMAP .This exercise is useful if you have the bathmetric data (in term of x, y, z) of the reservoir and want to create the volume-elevation (or stage) curve. The steps as follows:

You can now create a volume elevation curve. The best way to accomplish this is by using the Area and Volume analysis tool under the 3D Analyst tool bar as follows:

- Open the Area and Volume tool from the 3D Analyst toolbar
- Assign the new containment surface as Input surface
- Set the Height of plain to be the same as Z min
- Select Calculate statistics below plane
- Z factor = 1
- Select Save/append statistics to text file and select an appropriate location for the file
- Click Calculate statistics
- Increase Height of plane by a predetermined amount (e.g. 1o meters). This will likely be determined by the number of points required to create a good curve (typically 8 to 12 points is good)

Figure 6: Area and Volume Statistics ToolYou will now need to open the text file you created and modify the file so that it can be used in excel. The Area and Volume tool writes a number of statistics we don’t need like 2D and 3D areas so you will need to remove these. At the same time you will need to create a comma delimited file that can be opened into columns in Excel.

In the end you need only the Elevation and Volume items for each iteration in the previous steps. Save the file and open in Excel. You will now need to add column headers and create the curve. To do this select the Insert -> Chart -> Scatter Chart. When prompted select your data for the chart. You will likely need to switch the columns in the appropriate series so that the volume runs along the X axis and the elevation along the Y. In the end you should have a decent looking VE curve.

Figure: Volume Elevation Curve

Original link from here (http://spatialintel.blogspot.com/2010/08/arcgis-and-volume-elevation-curves.html)