The situation of water environmental quality and its causation in Taihu Basin was analyzed. The experience of water environmental management in the 10^th five-year project was summarized. It is proposed that pollutant source control be implemented for a long time. Management in Taihu Basin must consider the characteristics of its plains and network of waterway. The ponderance of typical macrophytic lake ecological deterioration should be recognized. We need to optimize each technique used in lake ecological restoration and emphasize on their combination. Based on social-economic development program in Taihu Basin, we put forward our strategic thinking for the control of pollution and water remediation in the future, which was implemented successively by pollutant source control, watercourse pollutant collection, small lake and marshes regulation, estuary intensity purification, lake ecological restoration, outflowing leading, et al. All these steps could accelerate the improvement of water quality in Taihu Basin. We proposed technique combination and project demonstration of whole basin pollutant reduction and ecological restoration of representative district of drinking water sources, and also suggested the development and demonstration of water environmental management policy and supported techniques.