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The Congress has directed that water resource development plans and projects be comprehensive in that adequate consideration be given to all uses that are of value to the public. Besides power, flood control, navigation, and irrigation, statutory support is specifically mentioned for recreation, fish and wildlife, water supply, and water quality control. The general principle applied is that each use should be developed so the difference between benefits and cost is maximized, although in applying this principle it is recognized that latitude must be exercised to allow for benefits or effects of public concern that cannot be appraised in monetary terms and for choice between conflicting uses. A major feature of the paper concerns the concepts involved in hydro power project formulation. To determine whether power facilities should be included in a water resource project, tests are applied to ascertain economic and financial feasibility. The application of these concepts or corresponding ones used earlier has resulted in the authorization of power facilities in the southeast the capacity of which totals 1,647,000 kw with an average annual output of 3,875,000,000.