In this study, we described voltage fluctuation characteristics of distribution line during starting and normal operation condition of the small hydro generators. Based on these theories, we scrutinized the starting and operating characteristics of induction generators installed in two small hydro power plants that is connected to the distribution line and researched necessary factors when selecting the generator type. The type of turbines and capacity of generators are different. One is below 1,000kW and the other is above 1,000kW. Two generators are tested during starting, and it acts as motor not generator at the instant that the machine is connected to the grid. After connecting to the grid, the machine rotates above synchronous speed before converting to the generator mode. Therefore the characteristic of the generator during starting is same as it of motor.