Power system performance is affected by dynamic characteristics of hydraulic governor-turbines during and following any disturbance, such as occurrence of a fault, loss of a transmission line or a rapid change of load. Accurate modelling of hydraulic governor-turbines is essential to characterise and diagnose the system response during an emergency. In this article, both detailed and simplified hydraulic systems governed by proportional-integral-derivative and proportional-integral controllers are modelled. This article examines their transient responses to disturbances through simulation in Matlab/Simulink. The article also investigates the dynamic performance of an isolated hydraulic system through evaluating stability margins, eigenvalues, root loci and frequency deviation time responses of the system. The results obtained provide an insight into the stability of the power system governed by different governor settings.