ABSTRACT With the ever-increasing population of the basin areas as well as the rapid development of industry & agriculture and economy, it gives rise to the correspondingly increasing demands for water and sewage discharge, which leads to a variety of ecological problems such as water pollution and eutrophication. Chaohu basin is also confronted with the same problems that are mentioned above. How to resolve and achieve the win-win situation between socio-economic development and ecological environmental protection es the spotlight in the field of ecological economics research, which primarily concentrates on study of the interaction & regulation between the socio-economic development and environmental evolution that are conducted as the basis of basin unit. However, the characteristics of these studies are as following:(1) They mainly employ the qualitative description method and just a small number of studies conduct perspective quantitative analysis from the relative variables; (2) Concerning the qualitative analysis, it primarily employs the regression analysis and the partial correlation analysis. The fundamental limitation of the above two methods is that they both paratively stringent date processing and sampling. Therefore, taking account that under the undesirable condition of limited statistical data in the majority of areas as well as non-feature distribution, whatever adopting the alternative method fails to achieve the requirements of the quantitative analysis. This paper mainly employ the grey correlation analysis to conduct profound research on the socio-economic factors that affect the quality of Chaohu Basin from 2000-2006. Furthermore, it also studies the relationship between the industrial structure and water pollution, determining the influences that the industrial structure exerts on the water pollution, and pinpointing the relevant industries that play the relatively influential roles in the quality of Chaohu Basin. At the same time, this pape
