The lower Sg. Piah hydro-electric station is a river run-off hydro scheme with generators capable of generating 55MW of electricity. It is located 30km away from Sg. Siput, a small town in the state of Perak, Malaysia. The station has two turbines (Pelton) to harness energy from water that flow through a 7km tunnel from a small intake dam. The trait of a run-off river hydro station is small-reservoir that cannot store water for a long duration; therefore potential energy carried by the spillage will be wasted if the dam level is not appropriately regulated. To improve the station annual energy output, a new controller based on the computed river flow has been installed. The controller regulates the dam level with an algorithm based on the river flow derived indirectly from the intake-dam water level and other plant parameters. The controller has been able to maintain the dam at optimum water level and regulate the turbines to maximize the total generation output.