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Water in a hydro-electric generation system isn't 'consumed' - it's 'cycled'

Water is stored in a lake or reservoir uphill from the dam. Water is released through the dam to turbines, which generate power for distribution to the electrical system. The water collects in a lake downstream from the dam. Using off-peak electricity, the water is then returned to the uphill lake with electrically-powered pumps to start the cycle all over again.

No water is lost during the process - it's simply moved from one place to another - then back again.

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