We were engaged to evaluate the application of ecological compensation mechanisms as a tool for improved water resource management in China. Eco - compensation is a relatively new idea combining economics and the environment, with application in many areas of environmental improvement. This project studied the application of ecological compensation mechanisms in water resource management, reviewing the standard systems of evaluation for water resources ecological compensation, theory and methods compensation evaluation, and review of the case study as part of the Hei River Rehabilitation Project. Based on consideration for ecosystem improvement and social demands, we established a framework of standardized beneficial evaluation systems for ecological compensation applicable to water resource management. By developing pre-evaluation standard for comprehensive benefits, economic forecasting, social and ecologic impacts of new projects, this framework has been adopted as a reference by relevant decision making departments.