Many of the negative consequences of dam-related involuntary displacement of affected communities can be overcome by careful planning and by providing resettlers with adequate compensation. In this paper the resettlement scheme of the Kotmale Dam in Sri Lanka is revisited, focusing on resettlers' positive perceptions. Displaced communities expressed satisfaction when income levels and stability were higher in addition to their having access to land ownership titles, good irrigation infrastructure, water, and more opportunities for their children. However, harsh climate conditions, increased incidence of diseases and humanwildlife conflicts caused much discomfort among resettlers. Diversification away from paddy farming to other agricultural activities and providing legal land titles would have allowed them to gain more from resettlement compensation.