A　2D　numerical　model　based　on　Boltzmann　equation　and　an　unstructured　FVM　grid　with　a　kinetic　flux　vector　splitting　(KFVS)　scheme　was　developed　to　simulate　dam　break-wave.　As　an　example,　propagation　of　the　dam-break　wave　of　one　reservoir　dam　at　Yuhang　District　of　Hangzhou　in　Hangzhou　was　simulated　by　this　model.　Using　regional　economy,　population,　and　geography　data　of　2008,　the　economic　loss　caused　by　dam　failure　was　evaluated.　The　result　shows　that　total　economic　loss　is　about　20%　of　the　GDP　in　Yuhang,　which　is　close　to　the　conclusion　of　some　existing　researches.　It　is　foreseeable　that　this　method　would　to　be　used　more　widely　in　Zhejiang　for　dam　safety　management　©　(2013)　Trans　Tech　Publications,　Switzerland.