The development of water conservancy scenic spots (WCSS) in China has a trend of industrial agglomeration effect. However, there exits serious government regulation (GR) phenomenon. Taking the national WCSS as an example, the GR factor is added into the SCP analysis of industrial organization theory, and the R-SCP analysis method is deduced to analyze the development status of WCSS industry in China from four aspects of GR, market structure, enterprise conduct and market performance. Some conclusions are drawn as follows: ( 1 ) GR has positive and negative effects on the market structure, enterprise conduct and market performance; (2) the positive effects of GR can realize the orderly development of WCSS resources, improve the market concentration, reduce the malignant price competition and promote the effective resource configuration; ( 3 ) the negative effects of GR is that the enterprise conduct can also break through the GR, leading to the decline of the market performance.