After analyzing the precision and accuracy that can be achieved in the estimation of water quality parameters,as well as the characteristics of Hyperion data,the sensitive bands of different wavelengths and the high correlation coefficients with chlorophyll and suspended sediments concentrations of different algorithms(Ratio,Difference and NDVI)were determined and discussed in details.A hyperspectral model on water quality was developed and validated,and the eutrophic state of Taihu lake and its causes were preliminarily discussed.The precision in estimating water quality parameters by(using) modeling hyperspectral datasets of Little Environmental Satellite(Hj-1) was discussed and compared with that of EO-1/Hyperion.The result reveals the potential of the remote sensing applications of scheduled Hj-1 satellite with hyperspectral sensor on water quality monitoring.