Abstract: The advantages and disadvantages of centralized model, decentralized model and mixed model of financial management of small hydropower company groups in China are compared in this paper. Then, regarding to the situation of financial management in these groups, it is concluded that the relatively centralized model would be more reasonable for them. Finally, to realize the relatively centralized model, the ways to establish dynamic accounting institution and settlement center, to conduct comprehensive budget management, and to adopt regional division system are discussed.