Impact is evaluated in several ways:
Benefits to human society from dams such as agriculture, water, flooding and hydropower.
Damage to nature and wildlife (especially rare species) and effects on the geology of an area.
Whether changes in water flow and level will increase or decrease stability, and disrupt human lives.
A large dam can cause the loss of entire ecosystems, including endangered and undiscovered species in the area, and the replacement of the original environment by a new inland lake.
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