The role of hydropower as a renewable and balancing power source is expected to significantly increase in a Net Zero Emissions by 2050 scenario. As a common phenomenon in hydropower plants, hydropeaking will become more prominent, resulting in additional stresses on the ecological status of rivers. Here we propose a novel approach to design and operate auxiliary reservoirs called re-regulation reservoirs that aims to mitigate the adverse impacts of hydropeaking on rivers. A re-regulation reservoir aims at smoothing flow fluctuations caused by hydropeaking by diverting and retaining parts of high flows and returning them back to river corridors during low flows. The regulatory performance of re-regulation reservoirs is a function of its geometry and volume availability. It is defined (and optimized) by restricting various flow components thresholds. Using actual data from a hydropeaking-influenced river system, the operation and efficiency of potential re-regulation reservoir have been investigated by employing a range of thresholds for hydropeaking mitigation. A methodology and an open-access algorithm to operate re-regulation reservoirs, by establishing a hierarchy of conditions to restrict peak flow, minimum flow, up-ramping rates, and down-ramping rates was developed. Our calculations show clear theoretical possibilities for regulating hydropeaking with re-regulation reservoirs, while offering several advantages, including greater flexibility and adaptability to changing environmental conditions, power, and water demand without increasing the operational cost of power systems.