Abstract
With economic development, population growth, and the continuous improvement of living standards, the ecological problems faced by urban development become increasingly significant. Respecting nature and building a harmonious coexistence between humans and nature has subsequently become an important goal for territory development, protect and renovation. The harmonious coexistence of humans and nature must be based on the carrying capacity of resources and environment, scientific and reasonable planning following the local natural endowments and geographical characteristics. The dam area is the name of a local plain (diameter less than 10km) in a mountain or hilly area. Mainly distributed in mountain basins, river valleys, and foothills areas. In Yunnan, the dam area is the important production, living and ecological space, which carries the development of the local population and economy. The dam area has become a remediation, economic, culture center, and agricultural production base in Yunnan after long-term use and transformation. The paper starts from the characteristics and influences of the Yunnan dam area and the problems that affect its sustainable development, mainly analyzed the importance and significance of the current water system management in the dam area by sharing the planning project and case in Yunnan dam area and realize the purpose of the urban ecological cycle, water environment management, and improvement of human settlement environment, and explored how to achieve effective protection and development of territory through the management of water system management.