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The answer depends on what you mean by "better", in other words, what your purpose is.

The answer also depends on the dam sites and other factors such as construction cost. Lets assume you are talking about dams on a uniform valley, and that we ignore other factors such as construction expense.

If the dams are to control erosion, then probably two dams are as good as one.

If the dams are to provide a reservoir of drinking water, then its easy to see that one dam holds more water: just think of replacing the downstream small dam with the big dam (whose top is at greater elevation than the top of the upstream small dam) and you can visualize it holds more water than the two small dams.)

If the dams are to generate electricity, then loosely speaking, one large dam is equivalent to two small dams. This is true only if the water of the lower dam reaches the base of the upper small dam. Then the equivalent volume of water goes through both the pair of small dams and the large dam, and the sum of the heads of the two small dams equals the head of the large dam, so the generated electricity is the same.

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Q: Is one large dam better than two or more small dams?
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