In this study a brief introduction of China's SNWD project and MRP is given.The water distribution conflict along the Han River has been investigated.In order to keep water clean and secure the water to Danjiangkou Dam,both Shaanxi and Hubei province,as water donation areas,suffered huge economic loss,environmental loss and social capital loss.Both provinces are competing to take large volumes of water either from the Han or Yangtze Rivers to feed their people and industries.Considering their contributions to the national SNWD project,the central government has made efforts to compensate the two provinces.