The set of strategic choices between the government supervision authorities and the market entities of construction of water conservancy project is first clarified based on the government supervision modes for the market entities of construction of water conservancy projects. Secondly, the replication dynamic equations for different government supervision modes are established based on the two sides of the game. Then the evolution path of the two strategies in different situations is deeply analyzed. Finally, through the evaluation of the game payment matrix, the strategic selection in different situations is simulated, which provides a theoretical basis for the strategic decision of the government supervision departments, and it is beneficial to the scientific decision-making of the market entities of construction of water conservancy projects.