From the early years of the 20th century the vast water resources of the Highlands were coveted by those who saw the opportunity for generating electricity from hydro power. Anyone who works the land or climbs Munros can well testify to the amount of rain that falls in the region! Early attempts to develop the water power resources fortunately failed - suggestions included the diversion of water from the Falls of Glomach and the flooding of Glen Affric.

By the late 1940s, the North of Scotland Hydro Electric Board had been established and a major scheme to develop the area had been approved. This principally involved a large dam at Loch Mullardoch, a 3.5 mile long tunnel from here through the mountainside to a much smaller dam at Loch Beinn a' Mheadhoin, and a further tunnel to the generators at Fasnakyle just outside Cannich. Glen Affric was therefore preserved as the Beinn a' Mheadhoin dam is small, mainly out of site and had no effect on the water level of Loch Affric.

Apart from bringing electricity and employment to the area, the project also saw major road improvements, for example the road up Glen Cannich to Loch Mullardoch had to be largely reconstructed. The old track on the north side of Beinn a' Mheadhoin was replaced by a new road well above the new water level. Another major advantage would be the reduction of the risk of severe flooding in Strathglass - a problem having serious consequences over the centuries.

The project was massively labour intensive with the workers housed in two camps - one in Cannich and the other at Cozac near Mullardoch. In all, at its peak, over 2100 people were employed on the scheme. Remnants of the camps still exist today - the former camp cinema still remains as the village hall in Cannich.
The Mullardoch Dam, completed in 1951, holds back the combined waters of Loch Mullardoch and Loch Lungard totalling some 7.5 million cubic feet of water. It is 2385 feet long and 160 feet high. Just under 290,000 cubic yards of concrete were required for construction.

The other major hydro scheme in the area involves the River Farrar and the River Beauly. Two power stations in Glen Strathfarrar, at Deanie and Culligran, are operated by water power derived initially from Loch Monar.
After the waters of the Farrar and the Glass combine near the village of Struy to form the River Beauly, two further dams and generating stations at Aigas and Kilmorack complete the scheme.