This article offers a general description of hydropower regulations in Chile wherein two sectors that are regulated separately come to meet each other: water (as a natural resource) and electric industry (as an activity). First, the characteristics for pursuing the activity are described together with the manner in which the hydropower plants perform their function as an energy source both in terms of implementation (setting up the plants) as well as in terms of operations (functioning as an energy source). Second, the legal schemes that serve as the institutional foundation and regulatory system for water and energy are laid out. Lastly, specific regulation applicable to developing hydropower is reviewed in terms of both hydroelectric power plant projects (their construction) as well as operations.