The interaction of vegetation with the physical processes of the hydrological cycle addressed by Biospheric Aspects of the Hydrological Cycle (BAHC) of the initial Core Projects of the IGBP is a focus in academia at all time Water cycle and its biological process are of great importance to regional economic development and eco-environment establishment in China, especially for western development region For this reason, we summarized the process of development in research on the interaction of vegetation with the physical processes of the hydrological cycle in China At the same time, researches on Forest Water Cycle Ecology, Hillside Hydrology, Soil and Water Conservation Benefits of Protection Forest, and Purification Function of Aqua-Ecosystem are also covered in this paper,expecting to provide more information for water resources management and relevant research in China It is necessary to analyze the water resource security, eco-environment establishment and economic development of west region based on biological process of water cycle in China Relational scientific issues are also pointed. Finally, this paper discusses the harmonious development pattern of west and east in China and the strategy on ecosystem and water resource management.