This paper contains an analysis of conditions for erecting small hydroelectric power plants on the selected river in Lublin Region. The analysis covers technical options of the location of the facilities and their energy potential split into theoretical and technical potential. In addition, it refers to the most important legislative acts governing water management, including environmental protection. According to the analysis, the technical potential of small hydroelectric power plants on the river Bystrzyca Północna is about 125.5 kW. Energy production capacity is limited by both hydrological conditions and the necessity to adapt to regulatory framework concerning nature and environment protection, superior functions of watercourses and their situation in agricultural land.