Abstract
This article examines the relationship between local leaders and rural communities in Indonesia, which enhances good interactions between them and supports the sustainability of microhydro projects as well as develops the social and economic outcomes of those communities. By using qualitative and quantitative methods, we analyse the case study of two villages in Lumajang District, East Jawa Province, Indonesia. Results showed that the prominent roles played by the local leaders help make decisions on various complex issues affecting the community, acting as a liaison between governmental and non-governmental agencies and the community for financial and technical assistance, as well as help in the monitoring and evaluation of projects for proper implementation. Conclusions confirmed that local leadership is very important at the community level, especially in developing important networking and relationships.
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