We have completed both the installation of the demonstration project and the assessment of the stream flows in Watauga County, North Carolina. The 17 kW, high head (178'), project on Laurel Creek in Watauga County has produced about 60,000 kWh over its first nine months of operation despite some electrical and other problems. It is currently producing 16 to 17 kW on a steady basis and is functioning as a popular site for visits by people who plan to install their own similar plants in areas throughout the Southeast. The stream assessment proved to be less satisfactory than the subsequently developed method for predicting long term stream flows. The latter method has been applied to all western North Carolina and this report presents its general conclusions.