This paper analyses the relationship between the catastrophic flood occurred in 1998 and loss of wetlands and degeneration of wetland function in Songnen (Songhuajiang Nenjiang) drainage basin. It also raises relevant strategic policies concerning water resources management and flood control system construction according to the multi functions and benefit of wetlands in the basin. During the past 50 years, about 70% of the wetlands have been lost in this area, and wetland quality has been dropped obviously duo to population growth and competition for land between people and water. This has led to decrease of wetland functions on flood control, runoff pollution control and biodiversity conservation, as well as to eco environmental deterioration. It is necessary to conduct a comprehensive analysis, from the point of view of entire drainage basin and macro system, the natural, social and economic conditions and role of wetlands in the upper, middle and lower reaches of the rivers, and to achieve regional social and economic development on the basis of sustainable environment by taking the following measures such as overall planning, implementation step by step, closing hillsides to facilitate afforestation, soil and water conservation, land enclose to divert flood, wetland protection, re enforcement of dikes, channel dredging, environmental ma nagement, and rational exploitation.