This　paper　introduces　the　status　of　the　China　electricity　market　and　the　cascaded　hydro　station　in　F　province.　It　provides　a　layered　network　model　to　resolve　the　hydro　economic　dispatch　about　the　complex　hydro　plants.　At　the　same　time.　it　investigates　the　hydro-thermal　coordination　in　the　electricity　market　by　the　network　model　too.　The　corresponding　algorithm　can　realize　the　thermal　generation　with　a　lowest　cost　and　be　satisfied　with　the　actual　need.　This　theory　is　practically　significant　for　the　reforming　of　electricity　market　and　the　continuously　developing　strategy.　©　2002　IEEE.