The growing urgent need for water allocation and water use control is made clear by frequent droughts  in parts of Yangtze River Basin in the last decade and the adoption of stringent water management system. The principle, method and management approach of water allocation are discussed on the basis of the characteristics of this basin and the problems in water allocation. It’s found that the water allocation and control of total water use in dry years or dry periods should be focused, and the control of water flow process should be emphasized. Water use efficiency and management targets in water function regions should be taken into account in the control of total water use. Meanwhile, the management of water transfer projects and large reservoirs must be considered.