Abstract: Based on criteria of Sensitivity and reliability a optimization design of the monitoring network to monitor horizontal displacements of the dam of Baogang Waterleading reservoir is in this paper carried out. Some problems in planning of this network is from the point of view of netquality investigated. From 25 observation epochs 13 epochs are selected and proceeded with the calculation of horizontal displacements and geometrical analysis. It is to point out that the importance selecting datum of monitoring network correctly and the method how to make the deformation forecast with more epoch observations. Finally the physical interpretation for Dam Deformation is also brief discussed. All of those have practical significance for the same monitoring project.