No, it doesn not. The water simply passes through the turbines, and then passes out to the otherside.
See a similar question here: http://greenanswers.com/q/77034/energy-fuels/alternative/hydroelectric/does-water-get-damaged-all-dams
It may not be the pollution that you usually think of, but rather heat pollution and I guess oxygen pollution (higher concentrations downstream). There are plenty of other damaging effects as well, such as low sediment content leading to erosion, flooding upstream of the dam, blocking of salmon runs, and so on.
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