The correct reasoning for why the turbines for hydroelectric dams are located far below the top of the dam is:
to allow the potential energy of the water to increase greatly before reaching the turbines.
This is because the water stored at a higher elevation has potential energy due to its position. As the water flows down from this height, it converts that potential energy into kinetic energy. The greater the height (potential energy), the more kinetic energy is generated as the water flows down, which in turn enhances the energy available to be converted into electricity by the turbines.