This thesis is to study the effect of the Luo River to the economic and cultural development of the Yiluo area in the Sui dynasty and explore the relationship between it and the Grand Canal through the analysis of the water transport situation, influence to the capital construction, historical role of the Luo River. Generally speaking, the Luo River shows the influence of the Grand Canal to the economic development of the east capital Luoyang in the Sui dynasty because this river flows across the city Luoyang and the water transportation of it is closely connected to the development of the city Luoyang, the river can be regarded as the important link of the east capital and the Grand Canal. There are some questions I want to answer in this paper: 1) What is the basic geographical environment of the Luo River? 2) What is the history of the Luo River? 3) What is the relationship between the city Luoyang and the Luo River? 4) How the Luo River affects the economic and cultural development of the east capital Luoyang? 5) What is the water transport situation of the Luo River? 6) How the Luo River water transport situation affects the economic environment of the Yiluo area under the background of the Grand Canal? The history of the Luo River and the connection between it and the Grand Canal can be well known through the analysis of these factors. The purpose of the paper is to study and analyze the history of the Luo River in the Sui dynasty through the understanding of the effect of the Grand Canal to the development of this area. The analysis of the Luo River is a new angle of doing the research of the Sui dynasty and it can enrich our understanding of the Grand Canal. Key Words: The Luo River, Grand Canal, water transport, economic environment, capital Luoyang, emperor Yang Guang, food transport