Publisher Summary This chapter discusses the hydro-electric power development. There are a number of factors supporting the development of hydro-electric power i n developing areas which come about from policies established for or independently of the necessity for development. There are however, a number of factors which disfavor hydro power development in these areas. Although there are many developing areas which are supposedly arid, there are other areas which are most appropriate for developing hydro-electric power. One of the factors which strangely encourage developing countries to develop hydro power is first world countries tariff structures imposed on these countries. On international grids, charges to neighboring countries are equivalent to those of bulk consumers, but the latter includes certain amounts for distribution, transmission and administration as well as financing.