In view of the problems in China’s current ecological compensation mechanisms，the article proposes policies for market-oriented ecological compensation mechanisms in the middle reaches of the Yangtze River at the national and provincial levels. The authors make the following recommendations：to clearly define the rights and responsibilities of beneficiaries and protectors and define the property rights of environmental resources；to improve market-based ecological compensation principles and related laws and regulations；to increase market-based ecological compensation；to improve market-based ecological compensation fund management and encourage ecological transactions；to explore diversified approaches to and carry out pilot schemes of ecological compensation methods；and to enhance public awareness of market-based ecological compensation.