The ecological compensation mechanism in the Yellow River Basin is an effective approach to promoting ecological conservation and high-quality regional development. As a core element of such mechanisms

water allocation plays a pivotal role in balancing competing interests and achieving sustainable development across the basin. The Gansu section

'functioning as a critical water conservation and recharge zone

is central to ensuring the basins long-term ecological and economic viability. This paper explores the theoretical foundations of water-allocation-based ecological compensation mechanisms and focuses on the specific challenges and opportunities in Gansu section. It analyzes the current state of water distribution and ecological conditions

and proposes targeted strategies to enhance the compensation system. These include defining ecological compensation stakeholders and beneficiaries

setting rational compensation standards

diversifying funding sources

and improving management and supervision frameworks. This paper aims to address pressing issues such as uneven water resource distribution and acute water-use conflicts

and to promote coordinated

sustainable development among upstream and downstream regions

between both banks

and across main and tributary streams of the Yellow River Basin.