This is a study of the effects of hydropower dams on the physio-chemical and biotic quality of river water. It examines how the hydropower projects adversely impact on the spiritual change that river waters carry. Arguing that river water such as that of the Ganga have special psychic or spiritual powers and these are irreparably harmed by making the water flow through tunnels, reservoirs and turbines, it calls for use of the psychic powers of the rivers to give a boost to the service sector by situating service industries on their banks . It discusses the notion of water memory and its implications for homeopathy and spiritual and religious beliefs, methane emissions of dams and impact of peaking storage dams on water quality and aquatic biodiversity. With reference to Tehri Dam in particular, it provides new perspectives such as for generation of hydropower while maintaining free flow.