The mercury distribution and speciation in the water column were investigated from November 2003 to September 2004. The distribution and concentrations of total mercury (THg) and particulate mercury (PHg) showed that algae had a large capacity to bind mercury in late spring (e.g. in May). It is shown that dissolved gaseous mercury (DGM) concentrations may also be affected by algae activities. The MeHg profile in the water column at a highly eutrophied site in Hongfeng Reservoir demonstrated that most of the MeHg was produced in the hypolimnion, whereas the MeHg profile pattern at another site with less eutrophication indicated that MeHg in water was largely ascribed to release from sediment. In September, the outflow of the reservoir was enriched with MeHg, which was 5.5 times higher than that in the inflows. The discharge of MeHg-concentrated water from the anoxic hypolimnion in the reservoir may pose a risk to downstream fauna.