The project entitled Dynamics Mechanism of Water Cycle and Highly Efficient Utilization of Water Resources in the River Basin was accomplished by Prof. WANG Hao and other researchers of IWHR. Based on dynamics mechanism of water cycle in the river basin, water efficiency analysis tools linking different elements in water cycle were developed in this project. The evaluation management technology which integrated three links of water, namely water quality, water quantity and water efficiency was formulated. A method of transferring water utilization efficiency from low to high was proposed. Supporting role of fundamental science for water security guarantee in water-scarce river basins was enhanced. The project achievements have attracted world-wide attention and International Hydrological Decade defined "Nature-Man" water cycle under changing conditions as the only development direction in the upcoming decade, which has also promoted the status of IWHR in international arena.