From the beginning of this century, hydropower has developed dramatically in the southwest of China. The dams proposed to be built, especially on the Nu River, have arose drastic debates worldwide. Based on the analysis of international anti-dam movement and the reasons of China's dam construction, the paper propounds that China don't need to change dam development strategy currently, while some adjustments are necessary to be made on dam and hydropower development policy and decision making mechanism. Recommendations have been introduced as followings: to improve the operation and management of existing dams; to develop integrated river basin planning involving dams and other water projects planning; to implement strategic environmental assessment in the phase of river basin planning; to incorporate environmental assessment institution into decision process of project construction; to set up environmental monitoring system for dam management; to ensure legal rights and interests of population displacement and resettlement.