Energy security is so important especially when green energy choice is urgently in need. With a series of environmental pollution issues caused by burning fossil fuels, China will change in the future in responding to the need of shifting from fossil fuels to green energy. Hydropower resource is abundant with a great developing potential in China, especially the hydropower in the Yangtze River Basin plays a key role in the adjustment of China's energy structure. However, there are many obstacles to its development, including accommodation & consumption problem, environmental pollution & climate change problem, immigration issue etc. China has halted the development of the majority of small and medium hydropower projects, since the hydropower in the Yangtze River Basin also has many disadvantages on its own. This paper summarizes the current situation of the hydropower industry in the Yangtze River Basin, and makes a comprehensive discussion on its development by using Externality Feature Analysis and SWOT Analysis. A series of development proposals from the aspects of institutional, technical, commercial and political are made to help make the hydropower be a better green energy choice, realize the healthy and sustainable development of the hydropower industry in the Yangtze River Basin, and ensure the smooth progress of energy structure adjustment in China. (C) 2018 Elsevier Ltd. All rights reserved.