Based on the consideration of water head and geology, the powerhouse of Shihlin Hydropower Project was located in the underground of the right bank of Chin San Creek at Chin San. However, bad geological conditions including gushing groundwater and shear zone were encountered during excavation of the access tunnel and powerhouse. It took one month and half a year separately to treat the above said geologic hazards. In considering the safety of powerhouse structure, a design change of relocation of powerhouse cavern was made. At present, the construction is going on smoothly.