System dynamics (SD) model is suitable for the simulation of the complex issues of regional development. Based on the analysis of the relationship among the sub-systems, the various elements of Lake Poyang Region system, the SD model is constructed, and 4 development scenarios are simulated to reveal the characteristics of regional development. Results show that the inertia development pattern not only leads to the slow pace of development, but also results in serious ecological and environmental issues; the pattern of high growth with low environment input maintain rapid economic growth but will lead to a greater damage of environment; meanwhile, the pattern of high growth and high environmental input can maintain the high speed growth of economy and solve the pollution caused by economic growth through increased investment in environmental protection; the industrial upgrading pattern emphasizing on economic restructuring, can ensure a relatively rapid economic development and maintain the virtuous cycle of regional ecology and environment. Account of regional characteristics of Lake Poyang Region and the advantages and disadvantages of each scenario, the recommended development pattern is put forward in this paper to achieve a balance between the economic growth and regional ecology and environment.