Hydropower developments modify existing terrestrial and aquatic habitats. Protection of biodiversity and threatened species populations need to be considered well prior to construction, at the siting and design stage, and options for mitigation identified and assessed.  Habitats of critical importance need to be identified within a wider regional context.  Scheme siting and design can ensure minimization of the environmental footprint and avoidance of areas with very high biodiversity values may be able to be avoided. 

At the planning stage, efforts can be put into catchment protection, creation of reserves, and habitat conservation.  Targeted management plans need to be developed for species of conservation significance, as well as for managing construction related impacts.  Translocations or habitat rehabilitation may be considered, along with identification of suitable habitat for ‘reserve’ management.  Compensation measures can be undertaken which include establishing and managing protected areas of comparable area and biodiversity quality to the area inundated by reservoir creation, and/or setting up trust funds and grants for environmental purposes.   

At the operational stage, management of flow releases can be utilized to preserve important aquatic ecosystem functions that will protect biodiversity.  As with all management measures, monitoring and adaptive management are essential.