The paper takes the common SW village in the SouthtoNorth Water Diversion Project’s external migrant resettlement area for example to explore the way of targeted poverty alleviation in reservoir region migrants, the results show that the key to poverty alleviation is the capital transfer. First, it is embodied in that the migrants’ secondary poverty and interventional poverty problems cannot be solved at the beginning of the movement because of coexistence of living exchange subsystem vulnerability and livelihood fracture caused by the blocked transfer way of capital. Second, the key to SW new village’s targeted poverty alleviation for eight years is the reconstruction of the capital transfer path due to efforts made by many sides. That is, breaking the traditional agricultural path dependence by natural exchange upgrading, providing market conversion conditions by the government to make human capital and natural capital transfer to material capital available, excavating the advantage culture capital of migrants’ traditional culture, breaking the segregation system by wellrunning capital transfer activity and forming a virtuous circle of micro and macro interaction.