A hilly watershed in Kopili River basin in Assam (India) was considered for assessment of hydropower potential using spatial tool (GIS) and hydrological model (SWAT2000). The available data related to topography, soil, land use, weather and discharge pertaining to the study watershed were used to characterize the watershed. The characterization was required for water resources hence hydropower assessment. The hydrology of the study watershed was simulated through the model. The prediction accuracy of the model was confirmed through three well known efficiency criteria viz., coefficient of determination (R(2) = 0.70), Nash-Sutcliffe efficiency (E = 0.64) and Index of agreement (d = 0.91). A total of 107 sites on 9 streams could be identified as potential location for hydropower generation in the study watershed using the model outputs. Distributed power availability through micro units (<0.5 MW) has been the characteristic feature of the watershed. Estimated potential carbon emission reduction (CER) within the watershed might be up to 125 thousand t CO(2), even 50% of the potential hydropower of the 1204 sq km watershed could be implemented. The result of the study is expected to boost the initiative for hydropower generation in the region considering the limitation of fossil fuels, increasing power demand and availability of untapped water resources. (C) 2009 Elsevier Ltd. All rights reserved.