We studied six interagency negotiations covering Federal Energy Regulatory Commission (FERC) hydroelectric power licenses. Negotiations occurred between state and federal resource agencies and developers over project operations and natural resource mitigation. We postulated that a balance of power among parties was necessary for successful negotiations. We found a complex relationship between balanced power and success and conclude that a balance of power was associated with success in these negotiations. Power played a dynamic role in the bargaining and illuminates important considerations for regulatory design.