I travel to a summer home in the mountains of Western North Carolina to meet Bill. He has come up with a way to pull a lot of water over a dam and into a permanent magnet alternator. He feeds the power to the house to supplement what is used. Bill is using Langston Alternative Power for his setup and makes around 500 watts.
http://www.langstonsalternativepower.com
The interesting thing about this micro hydro setup is the way that the system is started. There is a lot of water that needs to flow over a dam. To get this system going Bill uses a simple shop vac to pull the water over into the 6″ pipe.

No batteries or charge controller is needed. Simply a grid tie limiter inverter.

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