Abstract: Flood regulating by existing upstream hydropower station can ensure the safety of the downstream hydropower station under construction during the flood season. To effectively balance the risk and reasonably share cooperation benefits between upstream and downstream during the flood season, the compensation mechanism for construction diversion risk benefit of cascade hydropower stations is designed. Under the premise that the overall benefits can be quantified, the compensation is viewed as a payment behavior to implement risk benefit sharing. The framework and procedure of construction diversion risk benefit compensation in the condition of cascade hydropower development are built respectively from the following aspects: definition of compensation subject and object, demarcation of right and responsibility, risk benefit measurement, compensation implementation method and management process design. Aiming at the difficulty in implementation of compensation system, the corresponding strategies and suggestions are put forward, which can provide reference for the construction of risk benefit compensation management model and system in cascade hydropower stations.