From less than three dozen in 1949, the number of small hydropower stations in the People’s Republic of China grew to nearly ninety thousand by 1979. By the early 1980s, these stations were distributed across nearly 1,600 of China’s 2,300 counties. In 770 counties, small hydropower was the primary source of rural electricity generation. This article offers a history and assessment of these developments, unsettling our traditional emphasis on large-scale hydroelectricity. The article begins by reconstructing the PRC’s enormous investments in small hydropower from the 1950s to the early 1980s. This reconstruction, the first of its kind in the English language, not only helps reassess key periods and events in the history of the PRC but also establishes the position of small hydropower in the hydraulic history of the twentieth century. The article then turns to a discussion of the claimed impacts of small hydropower. As electricity became available for the first time in many parts of the Chinese countryside, it affected patterns of economic and social activity for hundreds of millions of people. Finally, the paper explores what the case of small hydropower can offer to conceptual and theoretical problems surrounding development, innovation, and the environment. Returning to the long-standing debate over scale and development, China’s experience with small hydropower reminds us of the important role played by smaller-scale, appropriate, and self-reliant technologies in global energy history.