I have a nice spot for a micro-hydro situation too, but I am pretty well established here. My thoughts were to figure out a way to build a homemade transmission line from the dam area, back to my house, since I cannot move my house.
You might be able to do the same thing. Go with a 3 phase generator on the dam, that way you will have minimum losses in your transmission line, and just bring the power back to your place. Of
course I am not sure how established you are, or how you like it or any of that. I am just suggesting a secondary way to get the same result.