This paper examines the main causes of the 1998 flood on the Yangtze and ad
dresses a number of issues related to the exploitation of natural resources
and counter-measures to the flood hazard. The records show that both the a
mount of precipitation over the catchment and the floodwater discharge from
the upper basin did not exceed the historical maximum, but water levels in
the middle basin were recorded much higher than the historical maximum. Hu
man activities have greatly increased the risk of the flood hazard. Extensi
ve reclamation of the lakes and fluvial islands in the middle basin has con
siderably reduced the floodwater storage and drainage capacity of these nat
ural landscapes of the Yangtze Basin. Deforestation in the catchment area h
as induced soil erosion, resulting in a large amount of sediment deposited
in reservoirs whose storage capacity is thus reduced. Strengthening the flo
od defence to protect people living on the floodplain has raised the water
level during the flood. An integrated approach is needed to produce a balan
ced management plan that can meet the financial needs of local people in th
e catchment area as well as reduce flood risk to the industries and urban r
esidents in the middle basin of the Yangtze.