Lewis, Bohlen, Wilson (2008). Dams, Dam Removal, and River Restoration- A Hedonic Property Value Analysis Contemporary Economic Policy Vol. 26 175-186

This study is actually very interesting. It focuses on the effects of the removal of the Edwards Dam in Maine and it's effect on housing prices. Indeed a control group for the experiment was noted not far away (a dam that was not going to be removed). After the removal of the dam the water came back into flow. This had a significant positive impact on fisheries, long term water quality improvement and an increase in real estate prices. Indeed there is real value in building a house on a river, however this change in real estate prices was not immediate but rather gradual and did not seem to trickle down into the down-town area.