Abstract: The comprehensive utilization of River Pei, Shi, and Hang, the three-river area, in Anhui Province was a waster conservancy project including irrigation, electrity navigation and cultivation etc. It was an artificial ecological system, but Some ecological disasters occured in that place currently. Besides adopting the policy of general help to the people there, the local government should also make ecological compensation such as afforestation in the mountainous districts.The funds for ecological compensation could be made from the charges from water conservation for irrigation, from protection of water resources and generation of electricity from the reservoirs, and from exploitation of water resources for industry and living. The funds could also come from the charges for flood protection, from Water and soil conservation extended by the state and from the money delivered to the old revolutionary bases as subsidy and also from the exoloitation of other resources in the mountainous districts.The distribution of the funds for ecological compensation should be closely connected with the conditions of forest management, adopting the policy of providing work as a form of relief and aconomic contracts to bring full play of the initiation of the people in planting and protecting forests, so as to keep high level of ecological balance.