Abstract: The Middle Route in South-to-North water transfer is one of the effective way to increase the water source for Huabei region in China, According to the plan of the water diversion from the Hanjiang River in the primary period, the mean annual volume of the water transfer is about 10 billion m3.It will give priority to the water supply for industrial development in the eleven cities along the channel.The irrigated area will be increased about 810,000 hectares.By the way, it will offer advantages for navigation, generation of electric power and fish-breeding etc.This paper tries to analyze the economic effect of the Middle Route Transfer, The results are.Ratio of Benefit-Cost is about 2; and Internal Rate of Return about 14%, These norms give indication of the feasibility of this project,Not only economic development will be advanced in the water consumption region after this project is completed, but some other advantages will be gained in the water supply district because of the compensative works in the Middle and lower reaches of the Hanjiang River.