Yes! Microhydro, or small hydro generators, have been used around the world to power homes effectively. In the United States having an off-grid home with hydropower is still somewhat unusual, so some time and effort may be required for setting it up and maintaining it, but it is definitely feasible. Start with the internal links in this Wikipedia entry: http://en.wikipedia.org/wiki/Micro_hydro and check out the citations for parts and tips.
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