This project describes the small scale hydro generation system using consuming water distributed to houses as an alternative energy source. Water flow in the domestic pipes has potential to generate electricity for energy storage purposes in addition to the routine activities such as laundry, cooking and taking bath. The inherent water pressure and flow inside the pipe from utilities??? main tank that used for the those usual activities is also used to rotate the hydro turbine to drive the mechanical shaft. This mechanical power is then being used to drive a generator in order to generate electrical power. This system which is termed as ???Pico-Hydro Generation System??? was constructed using Permanent Magnet DC generator to produce DC power for battery charging purpose as a mechanism of energy storage. The stored energy is applicable especially during electricity blackouts at home for small loads such as LED lamp, mobile phone battery charging, toys battery charging and etc.