Based on the analyses of the observations from the representative stations in the non-flood season, it is found that the observed runoff in Hutuo River at the beginning of this century has decreased to one third of that in 1950s. The decrease of the water in the upstream of the river has resulted in serious environmental deterioration in the lower reaches. Large-scale human activities have changed the underlying surface of the Hutuo River Basin. As a consequence, the natural annual runoff has decreased by more than 40% under the same level of the annual precipitation in recent years. Meanwhile, the percentage of the water consumption in the total water is increasing year after year. In this case, the river drying-up becomes normal and the water environment is deteriorating seriously in the lower reaches of the Hutuo River. Taking the Middle Rout Project of the South-to-North Water Diversion as an opportunity, it is expected that the relations of flood control, water supply and environment protection in lower reaches can be reconstructed for the reservoir regulation in order to restore the water environment of the Hutuo River.