This paper explores reforms in environmental and resettlement policies in India and the influence of domestic and external actors on the reform process. It also analyses the ways in which environment and resettlement policies have been implemented in a number of
hydropower projects. At project level the analysis focuses on how state and non-state actors influence decision-making on the introduction of superior environmental and social standards through changes in policies and laws. At macro level, the study begins by describing the multilevel processes that govern dam decision-making. It then considers the legal and policy level changes in the areas of environmental clearance and resettlement and the role played by state and non-state actors in the changes that have been made in the last three decades.