During the last few years, a large number of microhydroelectric schemes have been completed by the Appropriate Technology Development Organisation, Government of Pakistan. By using local materials and local technologies it has been possible to complete these schemes at an exceedingly low cost of Rs.4, 000 to 5, 000 per installed KW. In addition to supplying electricity for household consumption some of these plants also provide motive power to run small industrial units. Participation of local community is another outstanding feature of the ATDO's programme which is contributing towards meeting the main objective of development - man rather than to develop things. The salient feature of the programme is its impact on rural life. It is concluded that microhydropower schemes, if implemented appropriately, can become a viable option for supplying partly the energy needs of rural communities.