Abstract: Traditional reservoir resettlement mechanisms have gradually revealed deficiencies in aspects such as immigrant integration, regional coordinated development, and ecological-economic balance.Innovatively constructing an incentive-compatible reservoir resettlement mechanism has thus become an urgent need.We analyzed the intrinsic connection between the resettlement work of reservoir migrants and Chinese-style modernization, dissected the existing problems in the current mechanism, and proposed the construction framework and innovative path of the incentive compatibility mechanism.Additionally, it put forward implementation paths and policy recommendations from aspects including laws and regulations, organizational leadership and capital investment.The research aims to enrich the theoretical system of reservoir resettlement, provide references for achieving the goal of enabling immigrants to relocate, settle down stably, develop capabilities, and achieve prosperity in practice, assisting rural revitalization and new-type urbanization, and promoting the process of Chinese-style modernization.