Since 1949, a great achievement on water conservency has been gotten in China.But emphasis on construction of water project, and neglect of water management have existed for a long time under planning economy in the past in China.Water management is a fundamental way to develop and use water resources.It is a great systematic research related to policy, law, institution, economy and modernization of sciences and techniques.Water price is an outstanding problem in water management since the price is too low to cover investment and management cost of water projects which are become senile and inefficient, causing the waste of water and damaging the environment in China.The lower Reaches Irrigation District of delivering water from the Yellow River is located in Shangdong and Henang Provinces.The irrigated area is about 2 800×10⁴mu (186.6×10⁴ha).The amount of delivering water from the Yellow River is about 10 billon m³.The irrigation district is selected as an example to analyse the problems including composition of water cost, present water price and relationship between water price and regulation and control of water resources in this paper, because the contradiction between water supply and water demand is becaming more serious with the growth of population and economy in the Basin of the Yellow River.