The aim of this investigation was to develop an environmentally friendly nano-hydraulic turbine. A model of a two-bucket Savonius type hydraulic turbine was constructed and tested in a water tunnel to arrive at an optimum installation condition. Effects of two installation parameters, namely a distance between a rotor and a bottom wall of the tunnel, a rotation direction of the rotor, on the power performance were studied. A flow field around the rotor was examined visually to clarify influences of installation conditions on the flow field. The flow visualization showed differences of flow pattern around the rotor by the change of these parameters. From this study it was found that the power performances of Savonius hydraulic turbine were changed with the distance between the rotor and the bottom wall of the tunnel and with a rotation direction of the rotor.