Hydroenergy is developed due to its low-cost and near-zero pollution emission properties; therefore, the efficient management of hydroenergy is an important goal of sustainable development for any nation, especially for China, since it owns the most abundant water resources around the world. Developing hydroenergy is not only an effective response to the energy crisis but also a positive way to cope with climate change in China. Nevertheless, research on hydroenergy in China is still not comprehensive. This study reviews hydroenergy development in China by combining its geographical characteristics and hydroenergy reserves. The general condition of hydropower development including large- and medium-scale hydropower stations and small hydropower development is presented. This article illuminates the potential problems and existing challenges in China’s hydropower development and relevant exploitation suggestions are provided for hydropower development in the future.