It has been almost a hundred years since now that the village of Ginzling, located in Tyrol, uses its own spring for the supply of drinking water. Nevertheless, the maximum value of 10 µg/l of arsenic in drinking water, mandatory in Austria since 2003, is exceeded significantly. Therefore, the Water Cooperative of Ginzling is in need to come up with alternative solutions for the drinking water supply of Ginzling. The spring called “Sulzenquelle”, close to the village at the “Floitental” has been evaluated to be the best option. The spring is owned by the family of Trauttmansdorff, who have already planned to utilize its water by building a small scale hydro power plant to electrify their properties, located high in the mountains of the “Floitental”. As the “Floitental” is situated in the natural reserve “Zillertaler Hauptkamm”, approval by the authorities for constructing a small scale hydro power plant has been impossible. But through the necessary building works of the drinking water supply project by the Water Cooperative of Ginzling, the power plant can now be realised simultaneously. It has been almost a hundred years since now that the village of Ginzling, located in Tyrol, uses its own spring for the supply of drinking water. Nevertheless, the maximum value of 10 µg/l of arsenic in drinking water, mandatory in Austria since 2003, is exceeded significantly. Therefore, the Water Cooperative of Ginzling is in need to come up with alternative solutions for the drinking wat This Master Thesis evaluates the economic potential of this small scale hydro power plant project. After a comprehensive literature research and project description a Swot-Analysis and Stakeholder Mapping will be conducted, followed by capital budgeting and a risk- and sensitivity analysis. In a final step the results will be assessed, and a recommendation will be given weather the small scale hydro power plant should be realized.