The Grand Canal of China is the largest canal system located on the most complex landform with longest history for application listed in The World Culture Heritage group,with water projects as mainbody and core components. Based on investigation of canal and related rivers, all kinds of water projects and heritages along, existing functions, management system and related planning on the canal, this paper analyzes prominent problems on water projects heritages conservation and development, discusses strategy in the future and gives proposal on macroscopic view. Research finds that the Grand Canal with double attributes of a culture heritage and active water works continues to evolve as its essential characteristic, and the isolation of relevant departments and inadequate legal system are the primary causes of existed problems. It is pointed out that the water functions of the Grand Canal should be equally accounted in canal heritage protection, and its utilization such as culture heritage, perfect and united law system and technical standard system should be formed for in-use heritage conservation. Overall planning, distinct treatment, emphasizing the key points and step-by-step actions should be the principle to conserve and develop the water heritages of the Grand Canal, and basic and applied research, demonstration and spreading of water technology and culture in canal history should be reinforced in the same time. © 2016, China Water Power Press. All right reserved.