Through monitoring and field survey,the paper analyzed impact of hydropower project on water environment of Jinshui River basin in the upper reaches of Hanjiang River. The results indicated that ①the variations of monitoring value of electrical conductivity (EC), total dissolved solids (TDS), five day biological oxygen demand (BOD5), bicarbonate (HCO3-), sulfate (SO42-), total hardness (T-Hard), dissolved Si, orthophosphate (PO43--P) and total dissolved phosphorus (TDP) are not significant on season.②The values of chemical oxygen demand (Mn) (CODMn), dissolved Cr and As, nutrient matters of PO443--P and TDP have exceeded the guidelines in different sampling periods and extents. ③As the main factors of controlling the hydrochemical characteristics of the river, the monitoring values of water temperature (Temp), pH, and dissolved oxygen (DO) are linearly correlated with EC, TDS, CODMn, HCO3-, chloride (Cl-), nitrate (NO3-), fluoride (F-), As, Cr, Si, ammonical nitrogen (NH4+-N), nitrate nitrogen (NO3--N) and PO43--P present significant linear correlation respectively. The completed hydropower projects damaged the continuity of watershed to a certain extent and reduced the capacity of pollutant carrying of water body and deteriorated the water quality of river. Accordingly, the paper put forward some reasonable suggestion so as to resolve the conflicts between hydropower development and environmental protection ,which can provide the basis for watershed ecosystem management of the upstream of HanJiang river.