The article analyses the negative environmental and social consequences of hydropower development in the first third of the 20th century. The author examines the changes in the assessment of damage caused by hydraulic engineering works between the 1890s and 1930s. The study aims to answer the following questions. How did the state, society, and science interpret the concepts of ‘damage’ and ‘harm’ caused by large-scale transformations of landscapes? How did these interpretations and understanding of damage from flooding of territories change during the first third of the 20th century? The study focuses on the government policy regarding hydropower development on the East European Plain, one of the oldest developed regions of the country. It also considers the activities of research institutes studying the impact of water reservoirs on the environment, as well as the population’s attitude towards the flooding of territories and resettlement policy. The study’s results indicate that expert, scientifically based assessments of the impact of water reservoirs on the environment and the planned economy are crucial in matters of hydropower development and resettlement policy. In the 1920s and 1930s, the scientific community was first confronted with the challenges posed by the overgrowth and siltation of reservoirs, changes in floodplain ecosystems, and other issues. Due to the increasing scale of hydroelectric power stations construction and the need to preserve agricultural land and forests, measures were developed during this period to minimize the negative consequences of flooding and inundation of areas. In implementing hydropower projects, the government authorities focused primarily on economic considerations. However, the long-term environmental and social consequences of this construction continue to affect society today.