Cities in Taiwan are so dependent on reservoir water that preservation of the upstream reservoir watershed has become a significant public concern. However, due to the high-density development of land, resulting in rapid urban expansion, the construction of tunnels and elevated highways across reservoirs to better utilize the surrounding land has become a global trend. Based on data from long-term observation of the reservoir, this study verifies the difference in water quality before and after the highway construction. The results indicate that the total phosphorus (TP) increased on average 14 μg/L to 36.5 μg/L per annum, and the water quality is expected to require 10 years to recover. During the highway development, the average TP was more than twice the normal level. During summer, the TP level increases 3.1-fold due to rainfall. As indicated by the results, the large-scale land development will harm the long-term preservation of the reservoir’s water quality, and therefore should be avoided.