Stage-discharge curves are particularly important in river basin management. For a compound channel, the stage-discharge curve is often difficult to be extrapolated to yield estimates of level for a given frequency of flow. By analyzing a large number of experimental data from Science and Engineering Research Council Flood Channel Facility (SERC-FCF) and applying system dynamics method, the authors established system dynamics model of conveyance capacity when rivers flow in an overbank mode, spilling onto the adjoining flood plain. The model was applied to a compound channel. And the corresponding simulated results are shown to attain high accurcy.