Since the operation of Luoyang Guxian Reservoir in February 1992, although it has exerted great benefits in flood control, water supply and power generation, it has caused unstable flow of downstream rivers after peak shaving operation, and the irrigation, power generation, water supply and aquatic products of downstream counties have caused great losses. The necessity and feasibility of building the Yumen River counter-regulation reservoir are analyzed from the aspects of geographical location, geological structure and economic benefits, which provides a technical basis for the early construction of the project to give full play to its huge economic benefits.