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To curb the severe ecological deterioration in the lower Heihe River Basin (HRB) in northwest China, a water diversion project was initiated in 2000. A comprehensive analysis of the ecological effects and potential risks associated-with the project is needed. We assessed the hydrological and ecological achievements, and also analyzed the potential problems after the project was completed. We found that since the project began the hydrological regime has changed, with more than 57.82% of the upstream water being discharged to the lower reaches on average. As a result, the groundwater level in the lower reaches has risen; the terminal lake has gradually expanded to a maximum area in excess of 50 km(2) since 2010, and there has been a significant recovery of vegetation in the riparian zone and the Ejin core oases, which represents the initial rehabilitation of the degraded downstream environment. Additionally, the economy of Ejin has developed spectacularly, with an annual growth rate of 28.06%. However, in the middle reaches, the average groundwater level has continuously declined by a total of 5.8 m and significant degradation of the vegetation has occurred along the river course. The discrepancy in the water allocation between the middle and lower reaches has intensified. This highlights the inability of the current water diversion scheme to realize further ecological restoration and achieve sustainable development throughout the whole basin. In future water management programs, we recommend that water allocation is coordinated by considering the basin as an integrated entity and to scientifically determine the size of the midstream farmland and downstream oasis; restrict non-ecological water use in the lower reaches, and jointly dispatch the surface water and groundwater. (C) 2017 Elsevier B.V. All rights reserved.