The Kouhe River in Liaoning Province, China is polluted by industry, agriculture, and sewage, harming water quality and affecting the Qinghe River. To protect the river basin, a compensation standard based on water pollution levels was calculated for Xifeng County and Kaiyuan City. The study found that Xifeng County should compensate Kaiyuan City 390.9 x 10(4) to 514 x 10(4) yuan annually, depending on pollution levels and water flow. This compensation mechanism aims to raise funds, allocate them, and ensure proper supervision for ecological restoration.