In Japan, a small-diameter tunnel boring machine (TBM) of diameter 2.6 m applicable to a wide range of geology from hard rock to soft strata was developed with the purpose of reducing construction costs of headrace tunnels for small hydroelectric power stations. And in 1983, a demonstration test was carried out in the No. 1 headrace tunnel work of Hayakido Hydroelectric Power Station. The principal achievements in executing work are the following: (1) Although this TBM was a demonstration test unit, excavation advances averaged more than 200 m/month and exceeded the average 150 m/month with a conventional method. (2) According to PS velocity surveys after tunnel excavation the zone of loosening due to the TBM method was small enough to be ignored and was approximately one-half compared with conventional methods in rock of the same evaluation.