China’s consumption of electricity is increasing with its economic development. Although the main supply of electricity power is still coal, the government has recognized the importance of renewable energy and energy transition. China officially made a pledge of carbon emission reduction after the Copenhagen conference and enhanced its efforts to promote the environmentally sustainable alternatives to coal-fired power plants. Hydropower is the central of this strategy to achieve sustainable energy production. Due to the ecological and social influences, the 13 dams concentrated on the Nu River have caused a fierce debate over the past decade. Premier Wen even halted twice the project in 2004 and 2009. However, faced with increasing energy demand and Copenhagen commitment for carbon emission reduction, hydropower development remains a top priority and the 12th Five-Year plan will continue the construction of the Songta Dam on the Nu River. The other four dams including Maji, Yabiluo, Liuku and Saige should undergo orderly preparation as well. Thus this thesis aims to evaluate to what extent has China’s decision to build large dams on Nu River taken sustainable development into serious consideration under the seven priority strategies policy framework of World Commission on Dams. The study finds out that China’s decision to build dams considered the environmental and social issues, but when it comes to population and displacement issues, more efforts of implementation are needed and the process of benefits sharing and getting acceptance as well.