Yichang has long been a major transit port and distribution center of goods, and serves as the economic hub of western Hubei province and an intermediary between the major cities of Chongqing and Wuhan. Its primary industries are shipping and shipbuilding, taking advantage of its location on the Yangtze River.
Yichang prefecture is the site of many major hydroelectricity projects. The best known of them are the two huge dams on the Yangtze River: the Gezhouba Dam (located just upstream of Yichang central city) and Three Gorges Dam, which is 40 kilometres (25 mi) upstream. The Geheyan Dam and Gaobazhou Dam on the Qing River are important as well. Besides those, a huge number of medium-sized and small power plants operate on smaller rivers and streams within the prefecture
