Pico hydro is a term used to distinguish very small-scale hydropower with a maximum electrical output of five kilowatts (5kW). It is a good technique of providing electricity to the off-grid remote and isolated regions that suffer energy deficit. Typical pico hydro generator is designed and supported by electrical converting system, batteries and safety equipment so that it can be installed at the residential water pipeline. In pico hydro generation, the environmental impact is negligible since large dams are not involved, and the schemes can be managed and maintained by the consumer. This paper is reviewing the application of hydro generation and particularly focusing on the implementation of pico hydro generation system in University Malaysia Pahang (UMP) Campus-Pekan. This system was designed and simulated using the Matalb simulink blocks. The pico hydro generator has been tested in a real application with a pelton turbine design which utilizes a high pressure of water flowing from the main tank into the faculties. The speed of the turbine and alternator depend on the pressure of the water. In this work, a 1.05kW alternator is used to charge the battery and the DC power output from a battery is converted into 220V, 50Hz.