The financial management is an important aspect of the constuction and managementof South to North Water Diversion Project. Based on a case study of the financial management of Taocha canal project in Middle Route Project of South to North Water Diversion, the key points and sifficulities of financialing, risk prevention and sharing of investment and benefits are investigated. The current situations of its financial management, risk management and internal control are analyzed. The effective control measures and methods for its financial management are explored. The financial management of water conservancy projects is general properties, so the present case study may provide reference for the financial management and risk control in large and medium-sized water conservancy projects.