Abstract: Economic impacts of large-size multi-functional hydropower project are complex and interactive, which are transferred via economic industrial chain and interregional economic linkage. Comprehensive assessment must take a perspective of integrated economic system. This paper presents a multi-regional computable general equilibrium (CGE) model for assessment on the project economic impacts from multi-dimension perspectives, and discusses its application to analysis of the impact mechanism and transfer path induced by hydropower development in the upper Chuan river. The results indicate that the hydropower projects in this valley has outstanding benefits to regional economy, which are reflected in various indicators such as consumption, investment, import, export, GDP, and employment. From a spatial perspective, the impacts descend along the distance from the project location.