The role of the state as regulator combined with policies on Corporate Social Responsibility (CSR) that go beyond legal requirements to establishing programmes that promote development and good international business practice is an emerging new paradigm. In this paper, the example of a state-owned company, Statkraft A.S. of Norway, and its recent hydropower investment in central Laos illustrates how policy, implementation and follow-up can lead to benefits for local communities in the impacted area of the Theun-Hinboun Expansion Project (THXP). Programmes include both support for and improvement of existing government education programmes, employment opportunities and specific programmes for youth. They have been designed to mitigate possible negative effects of the influx of workers and rapid socio-economic change in the affected area. Young people continue to have a central role in the implementation of these programmes as peer educators under the supervision of project staff and non-governmental organisations (NGOs).