Ontario Power Generation (OPG) has embarked on a major redevelopment of the Kakabeka Falls Generating Station, located near Thunder Bay Ontario. The design build contract, awarded to Stuart Olson GDB Joint Venture (SGJV) with engineering provided by Hatch, includes the replacement of the four generating units with two units (2 x 15.7 MW), steel penstocks and surge building. Water to the facility is supplied by a 2-km long concrete aqueduct that was constructed in 1997/1998 and has a relatively low pressure capacity. Refurbishing or replacement of the aqueduct to increase its pressure limitation would be very costly; therefore, alternate approaches to dissipate the large pressures experienced during normal and extreme transient events, such as load rejection, were considered. The result was a unique and innovative design with two full-flow bypass valves and a surge tank featuring an overflow structure. Through extensive transient analysis, the configuration demonstrated excellent performance without exceeding the existing aqueduct’s pressure limitations. This paper will provide valuable insights into the optimization of hydropower facilities to accommodate site-specific conditions in a cost-efficient manner.