According to current situation of the management of the Yellow River, this paper puts forward the strategy and path for the optimization and transformation of the management of the Yellow River. The Yellow River's self-potential should be brought into fully play to make efforts to realize the maximum and optimal use of water resources of the Yellow River basin, and conduct precision control of water use to maintain its water resources and the sustainable supply of its water resources to meet regional water demand. Based on the principle of diversion and drainage of Dujiangyan of the Minjiang River, according to the changes of the Yellow River water potential in different years and different seasons, it is suitable to drain at the flood season and to build dam for water storage and energy storage in the middle and upper reaches of the Yellow River. By the innovation in water storage and energy storage mode, with the principle of advanced pumped storage power station, we should build a complex of water storage and energy storage to form a water and energy production cycle system and achieve a virtuous cycle of water resource and energy resources of the Yellow River by transforming the rich wind energy and solar energy resources in Northwest China into water energy to be stored, and adjust water supply or energy supply according to the demand of water and energy resources, which can not only relieve the flood pressure during flood season, but also provide water supply and energy supply in drought years or dry seasons to alleviate the drought. By using advanced information technologies such as 5G, smart technology and big data, the water conditions of the river sections in the whole Yellow River basin are monitored and regulated to achieve stable flow control and avoid negative effects.