Abstract: Multistage policy-making processes and optimization of water development along both sides of yumen section of Lanzhou- Xinjiang railway were studied by means of dynamic planning process. With total cost and maximum net benefit of channel system as objective functions, mathematical model, optimization channeling route and distrbution scheme were established respectively in light of local natural conditions and statistical data. The mathematical model and calculation method have proved to be feasible through 15 years of practices.