The association has said the film may create tension in the state. "We respect local sentiment," the association has said.
Dam999 allegedly suggests Kerala's Mullaperiyar Dam to be weak and could wreak havoc.
The producer of Dam999 has denied the allegation.
Dam999 is slated for release this Friday.
Kerala's Mullaperiyar Dam irrigates the southern districts of Tamil Nadu. Tamil Nadu has rights over the waters of Mullaperiyar Dam for 999 years.
The Kerala government says the dam is weak and wants to build a new dam.
The storage of the dam has not been raised even after a Supreme Court order.