The objective of this work was to present an estimation method of the values of the health externalities associated to the operation of hydro power plants reservoirs. The method was applied in the cities of Uberaba and Uberlândia, Minas Gerais, Brazil, partially flooded by Miranda reservoir. The number of hospital admittances in the Public Health System and the population growth in the flooded municipal districts were analyzed. If there is a cause-effect relation between the lake and the diseases, the costs of externalities in 2001 were estimated in R$ 25,000 when US$ 1 corresponded to R$ 2,36; the population number linked to this value was 773.409. The economical value of the health impacts showed that they do not have much significance.
water-related diseases; externalities; reservoirs
