This paper reviews involuntary resettlement resulting from dam-building, which has been ignored relative to the dominant focus of migration research in China, rural to urban migration. Reservoir resettlement in China has a long history, often of misery and hardship for those displaced. Relocatees affected by the Three Gorges Project (1994-2009) on the Yangtze River face a similar situation. In China priority has been given to building the dam to provide electricity, flood control and navigation. Less attention has been paid to the problems of the people affected by the reservoir inundation. The rural population forced to relocate and rural-urban migrants in general have been discriminated against by national policies.

Employing empirical data derived from a questionnaire survey and in‐depth interviews (1997–1998) in the Three Gorges reservoir area, and using secondary sources in both Chinese and English, the paper describes the number, categories and spatial distribution of migrant flows, evaluates the major methods of settling relocatees, and explores the state of relocatees' feelings about their relocation. We found that the number of people to be relocated is still uncertain and environmental, social and behavioural factors influence the number. The relocation programmes are involved in settling people in nearby areas, in moving them far away, or in settling rural migrants in urban industrial enterprises. These resettlement processes are challenged respectively by a tight people/land relationship on higher ground above the reservoir, by the difficulties in rebuilding production systems and adapting to a new social setting outside the reservoir area, and by increasing unemployment in urban China. A series of problems with the relocation operation have resulted because of the lack of a generalised framework for population relocation and the inadequate involvement of those affected in policy‐making and relocation affairs. Despite expressing their support for the project, the majority of rural migrants have mixed feelings about their relocation. The results of our survey and interviews have revealed the fact that a number of relocatees are facing the risk of impoverishment because of a shortage of financial and economic resources, the environmental constraints on relocation capacity, and mismanagement of the operation. Under such circumstances, it is very difficult for those affected to view their displacement as a good opportunity to improve their standard of living. Copyright © 2000 John Wiley & Sons, Ltd.