AbstractEmerging issues from the Bui hydropower project suggest that the experiences of two earlier hydropower projects in Ghana failed to prevent challenges related to resource access and livelihoods. This article examines the nature of the challenges, their causes, why they were not avoided and the role of the Chinese builders. We conducted 43 interviews and 11 focus group discussions and analyzed qualitative data by themes using narrative analysis. Our findings show that the livelihoods of the resettled communities are, on balance, negatively impacted by the construction of the dam. While Chinese dam‐builders played a major role in financing and enabling the dam's construction, the Ghanaian governance arrangements were found to be more important in addressing the livelihood challenges.