Abstract: Modern watershed management is a multi-level and unified pollution control system covering watershed-region-pollution control unit-pollution source, which includes the watershed target management system, the watershed pollution control system, the watershed monitoring and the early warning system, the law and policy guaranteeing system and the watershed administration system. The watershed target management system is the core of watershed management; the definitions, connotations, main contents and functions of water body health target, pollution control target, natural ecology target, and scientific utilization target of modern watershed target management system were elaborated. The watershed pollution control system is a supporting system for modern watershed management; in order to improve the watershed ecological environment, a practical and scientific watershed pollution control system should be established. The watershed monitoring and the early warning system plays the roles of “perception”; and a complete system should possess capability of provision of timely, accurate and complete monitoring data, capability of network monitoring, capability of assessing, as well as capability of early warning and emergency response. The necessity of law and policy guaranteeing system was stressed for modern watershed management; to intensify watershed law making, to improve management regulation and to make proper economy policy could guarantee and support the smooth running of the watershed target system, watershed pollution control system and the watershed monitoring and early warning system. Finally the problem of “many dragons managing the same water separately”, in the other word, the separated management of the present watershed administration system was analyzed; the necessity and urgency of the watershed zoning management and regional coordination were pointed out. In China, watershed management is still at the beginning on stage, watershed pollution control, monitoring and early warning, as well as law and policy systems need to be much improved. Therefore, many works should be taken to the establishment of watershed target management, watershed pollution control, and monitoring and early warning systems; technology innovation should be encouraged, and law and policy guaranteeing system should be constructed; finally the cross-regional and coordinative modern watershed management would be realized.