Based on the daily rainfall, daily water surface evaporation of three typically representative years:dry year, wet year and average year, and land coverage data over different periods, this article selected the Lake Taihu basin which has obvious land cover changes and rapid urbanization as a typical area, to reveal the hydrological response of the basin to land use/cover change(LUCC) using the Taihu river system water quantity model, to analyze the LUCC of Lake Taihu basin from 1990 to 2000 and from 2000 to 2006, and its influence on water level process. This study can not only help for deep understanding on the variation of the hydrological characteristics of urbanized areas, but also can provides more scientific and reliable basis for flood control and disaster mitigation of typical urbanized area. Results showed that the acceleration of urbanization process caused the land use/cover change, whose features are conversion of paddy fields, water area to the urban one, and the acceleration of urbanization process. The urbanization rate for the period from 2000 to 2006 is greater than that during the period of 1990-2000. Underlying surface changes had a significant impact on the hydrological processes of Lake Taihu basin. With the land cover change under the urbanization process, water level increased in the overall, and so did the rate, consistent with the urbanization rate. High degree of urbanization, more obvious water level rising. Rainfall is also one of the factors controlling water level in the process.