The purpose of this research paper is to conduct a literature review regarding the technical specifications and design parameters required to design a functioning Micro Hydro Power System MHS (Micro Hydropower System). After review of the theory and principles of Micro Hydro System design; these principles are applied to the real case of Bhoot Khola Micro Hydro Project in Deurali Village Development Committee (VDC) of Tanahun Nepal. The field data required to design the civil components of the micro-hydro project were derived from secondary data sources such as the study conducted by the village development committee as well as other independent project surveys. The micro-hydro designed in this thesis was of "run-of-the-river" type. Similarly, system components designed in this thesis are intake structure, headrace canal to divert the water from the source, forebay tank, sedimentation basin and the penstock assembly.