Bhutan is a small landlocked country nestled deep in the Himalayas between India and China, with steep mountains and deep valleys that have resulted in scattered population settlement patterns. The country is well-known for its one-of-a-kind philosophy, Gross National Happiness (GNH), which guides its development strategy. The valleys’ abundant water resources create ideal conditions for tapping renewable energy sources through hydropower development, which has fueled economic growth by providing nearly universal access to low-cost electricity. Fiscal revenues from surplus hydropower sold to India and tourism have allowed the country to invest heavily in human capital development. As a result, there have been significant improvements in service delivery, education, and health outcomes.