Abstract: The 1987 Water Allocation Scheme has been in effect in the Yellow River basin for more than 30 years. This scheme needs to be adjusted dynamically to suit changing flow, sediment, and water use patterns. In order to allocate water resources scientifically in a changing environment, this paper develops a dynamic water allocation idea: "keeping the stock and allocating the increment", taking the Yellow River basin as the study area. This method involves first seeing to the water needs of the river habitat and the coastal waters. Then hyperconcentrated floods are created according to the dynamic sediment condition to cut down the amount of water needed to transport sediment. The water saved instream is regarded as the increment of off-stream water allocation. The increment is allocated to provinces along the Yellow River with consideration of both equilibrium and efficiency. Results show that the instream water allocation decreases 0.507-2.424 billion m³ though the highly efficient sediment transport method when the amount of sediment coming into the downstream area is 0.400-0.500 billion t. The increment of off-stream water allocation is mainly allocated to provinces in the upstream area. The dynamic water allocation method gives first priority to the environmant and natural habitats and ensures that the adjusted water allocation to each province is no less that the current amount. This paper provides a scientific method for sandy rivers to allocate water dynamically and provides a reference to the adjustment of the 1987 Water Allocation Scheme.