Beginning in 2003, China's Three‐Gorges Reservoir will start water impoundment in phases. By 2009, it will be holding 40 km3 of water, flooding a stretch of middle Yangtze River about 600 km in length. The water impoundment process represents a geophysical “controlled experiment” offering a unique opportunity for detailed studies of a classical forward/inverse modeling problem of surface loading. While Wang [2000] studied the large loading effects on a local scale, we aim for longer spatial scales upwards from several hundred km, specially on the time‐variable gravity signals that can be detected by the newly‐launched GRACE satellite mission, whose 5‐year lifetime (until 2007) will span the major impoundment period. Our results using the Green's function method adopting the PREM elastic Earth model indicate that the per‐year geoid height increase is above the GRACE observational sensitivity out to harmonic degree 20, and to degree 50 (corresponding to a wavelength of 800 km) when integrated over the 5‐year period.