AbstractWhy do dams exacerbate ethnic conflict in Turkey but not in Ethiopia? This paper analyzes the impacts of a growing push to develop water resources through hydroelectric dams, which promise clean energy, jobs, and economic opportunities. Yet dam building also causes environmental degradation, mass relocation, the flooding of historical sites, and long‐lasting cultural impacts. This paper focuses on how dams, as an extension of the state, can increase ethnic tensions by decreasing their autonomy and challenging their cultural practices, ultimately exacerbating violence. A comparison of two instances of large‐scale dam building in Ethiopia and Turkey during conflict illustrates various factors that contribute to ethnic tensions between minority groups. In Turkey, dams are weaponized against the Kurdish population, deepening ethnic conflict as the state asserts itself and a state‐centered national consciousness into a region historically wary of Turkish nation‐building. In Ethiopia, dam‐building, while framed in similar language as it is in Turkey, avoids heightening ethnic conflict because dams are seen as unifying the country rather than homogenizing ethnic minorities in rural areas. This paper argues that ethnic conflict is exacerbated when both (1) damming disproportionately targets one ethnic group and (2) when the targeted population is unable to access alternative mechanisms to air grievances. In developing the proposed theory, more insight can be gained into water, conflict, and dam‐building in conflict‐prone areas in fragile political positions. From a policy perspective, these findings indicate that more scrutiny over dams in such contexts is necessary for the protection of minority populations.