AbstractThe impact of large dam construction projects on the human environment, and particularly on resettlers, is often the main reason for opposition toward large dam construction projects. The World Commission on Dams (WCD) published its only and final report ‘Dams and Development’ in November 2000. The report contains a set of 26 guidelines. The WCD itself mentioned that the guidelines are not intended as a blueprint, and that these should be used as a starting point for discussion. Despite the clarification by the WCD, some non‐governmental organizations argue that these guidelines must be immediately adopted for all future large dam projects. The authors assume that only several of these guidelines are operational and many of these are either too experimental or theoretical to be put into use. Furthermore, some seemingly ‘ready for operation’ guidelines still need to be enhanced to be really operational in the real world. About 2000 large dams were constructed in Japan after World War II. Various principles and mechanisms were then developed to better address the issues related to involuntary resettlement. The knowledge accumulated through large dam construction projects in Japan may be applied to other countries. The aim of this paper is to identify the lessons, out of the experiences gained in Japan through large dam construction projects in the past, which could be applicable for future large dam construction projects in other nations. The socio‐economic setting, as well as the legal framework, in Japan differs much from those in the developing world. Nevertheless, the following aspects of the experiences gained in Japan are found to be both applicable and useful for future large dam construction projects abroad: (a) integrity of community in the negotiation process, (b) provision of alternative occupations, (c) funding mechanism in the post‐project period, (d) measures needed during planning process; and (e) making resettlers ‘shareholders’. These lessons may prove useful to enhance the WCD guidelines. Copyright © 2002 John Wiley & Sons, Ltd.