This paper highlights the design and development of micro hydro generation system which uses water to generate renewable energy. Electricity is generated from the conversion of one form energy to another. The turbine converts the energy in the moving water into rotational energy at its shaft, which is then converted to electrical energy by generator. The proposed micro hydro system will use the water source from consuming water which distributed to consumers. Thus, the system must be designed with the ability to produce high water pressure so the turbine will be able to rotate at the highest possible speed and at the same time the water can be recycled to be used in the routine activities such as bath. The water which is supplied to the consumer can be fully utilized by using the micro hydro generation system. © 2011 IEEE.