On the basis of the Taihu water resources assessment, an analysis of the importance and rationality of the water diversion from the Yangtze River to Taihu Lake in solving the water problem and establishing a harmonious eco-environment in the Taihu Basin is performed. The water quantity and water quality conjunctive dispatching decision-making support system, which ensures flood control, water supply and eco-aimed dispatching, is built by combining the water diversion with flood control dispatching and strengthening water resources monitoring and forecasting. With the practice and effect assessment, measures such as setting the integrated basin management format, further developing water diversion and improving the hydraulic engineering projects system and water monitoring system are proposed in order to maintain healthy rivers and guarantee the development of the economy and society in the Taihu Basin.