The causes of frequent floods in Jiangsu Province in recent years are analyzed. It is believed that the most fundamental reason lies in the long-term lack of allocation and trading of the initial drainage rights in the basin, in addition to the strong destructiveness of the flood itself. The necessity and feasibility of the allocation and trading of drainage rights in Jiangsu Province are discussed. The necessity lies in that through the allocation and trading of drainage rights, the balance of regional interests can be ensured, the contradiction of drainage can be relieved, and the benefit of flood control in river basins can be maximized, while the feasibility is manifested in clear legal basis, favorable policy guidance, better market basis and trading market conditions, complete scheduling scheme and good scheduling decision support information system, etc.