Large‐scale electricity policies that embrace renewable resources have led to continued investments in hydropower. Despite evolving viewpoints regarding the sustainability of large hydropower installations, there has been a major increase in support for the widespread development of small hydropower plants (SHPs). A global synthesis reveals that 82,891 SHPs are operating or are under construction (11 SHPs for every one large hydropower plant) and that this number is estimated to triple if all potential generation capacity were to be developed. Fueled by considerable political and economic incentives in recent decades, the growth of SHPs has greatly outpaced available ecological science. We provide evidence for not only the lack of scientifically informed oversight of SHP development but also the limitations of the capacity‐based regulations currently in use. The potential indiscriminate expansion of SHPs under the pretense of promoting sustainable energy is concerning, and we identify several important steps to help ensure new scientific advances, effective management, and policy reform in the future.