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This paper presents a micro hydro power generation hardware setup, established via a research project at Gebze Institute of Technology (GIT), Turkey. This project is founded by the government and aims to increase utilization of potential for small, local hydro power generation. The hardware setup consists of a newly designed cross flow type hydro turbine, two different generators (asynchronous and synchronous up to 20 kW power range) and all equipment necessary for grid connected operation and islanding. The setup can be used for two purposes: primarily performance tests of newly designed micro hydro turbines, and research and development studies to provide new regulations and technical guidelines regarding to energy management and grid connected and island (stand-alone) operation which concern for distributed generation versatility. The hardware setup offers a similar environment to that of real site which can easily be adapted to the clients test and turbine evaluation requirements.