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The rapid economic growth in China has caused ever-increasing pollution and gradual deterioration of surface water quality over the whole territory of China since 1978. Along with it, there have been 130 environmental protection policies publicized and enacted. Unfortunately, even though these contradictory phenomena have coexisted for almost three decades, the cause analysis and the effective evaluation of policy measures are still rare. The Jiaxing region, a lowland located at the Taihu Lake watershed, is a typical representative of this dilemma and was proposed as a case study area for an assessment on the effectiveness of the environmental policy measures mentioned above. The pollutant loads originating from point pollution sources were discharged into rivers at fixed in-stream sites, while pollutant loads from non-point pollution sources in rural areas were assumed to be rushed into rivers by stormwater runoff. The environmental policy measures concerning water quality in the Jiaxing region were specified quantitatively as parameters for estimating the variation of pollutant loads. The base case and other three cases with the effects of policy measures were then simulated by the surface water quality models. The results show that a significant improvement of the surface water quality can be achieved by controlling the non-point pollution in rural areas and the point pollution over the whole area, if the water protection policies are sustainable and executed completely, and if the local government is active in their administrative, supervising and educational responsibilities and the farmers assume voluntary activities on rural pollution control., (Copyright 2009 Elsevier B.V. All rights reserved.)