Abstract The main purpose of this research is examining the compatibility of the spatial arrangement of two of the most important renewable resources: the forests and the water potential of small watercourses, based on the statistically processed data of the observed fires, territorial modeling of Fire Weather Index, the analysis and quantifying the waters needed to extinguish fires, as well as based on researching the favorability of locations to build small hydropower plants (SHPP). The research period is spanned from 2004 to 2012 and it refers to the Republic of Serbia. The results and the conclusions are valid even beyond this territory. The transactional analysis proved a firm spatial and functional correlation connection between the layout of SHPP and the pertaining small accumulations with forest surfaces in the context of decreasing fire risks, which can be used in further research as an additional benefit in defining the justification for SHPP. With the construction of SHPP and small reservoirs and by putting them in function, less time is needed for extinguishing the fire. Also, consequential or incidental damages are diminished in the destroyed and damaged wood volume. It is reflected in the loss of protective and other functions of forests, appearance of Eolian and water erosion, degradation of forest land, roads endangerment, filling up the water reservoirs, and especially in the environmental damages that are immeasurable.