Eamonn Bonner, from Doochary, died instantly when a crane touched overhead wires near Dunlewey. He was working nearby.
Mr Bonner, who was in his early 40s and married with two young daughters, was working on a local water scheme at Meenaboll when the tragedy happened before 10am.
Gardai and the emergency services spent most of today at the scene.
The area has been sealed off as a full investigation is launched into exactly how the man died.
Mr Bonner, from Molley Road, Doochary, was a very experienced construction worker.
He had worked on construction sites in London during the boom times before returning to Donegal to work with local company Kilmac Construction.
Tonight his wife Collette and two daughters were being comforted by family and friends in the small West Donegal village.
A Garda spokesman said “It looks like a tragic accident at this stage. The man had been working in the area for a couple of days before the incident occurred early this morning.”
Officials from the Health and Safety Authority are also understood to have arrived in the area to complete an investigation.
Locals in Doochary were numbed by the tragedy.
One said “Eamonn worked night and day and was always on the go. He was a real family man. He played football for Na Rossa when he was younger but he had stopped after he travelled to London to work.
“All he lived for was his family and it’s terrible to think he won’t be able to see his little girls grow up now.”