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Hydro power is the conversion of the kinetic energy in falling water into electricity. The vast majority of hydro power today is being generated at huge facilities with large dams and reservoirs. Reliable, low-cost, emission-free, renewable energy is produced in this way, but the environmental and social costs of large scale hydro projects, from the damming of rivers and flooding of large tracts of land to the displacement of people from the affected areas has led to increasing opposition to further large scale hydro power development.
Micro-hydro is hydo power generation on a small, even tiny, scale. Recent improvements in small turbine design allow for the efficient generation of power from even a low-volume stream with only a short vertical drop (known as "head"). Real Goods, for one, now sells hydro systems which will produce reliable power on a stream with only a few feet of head. For the homesteader, micro-hydro is an attractive option, with the potential to supply all of a family's electrical power needs. This makes the presence of a year-round stream with enough flow and head a very attractive feature. If such a stream is on your land, congratulations. And if you are shopping for land, it's one more thing to take into consideration.