The effect of total dissolved gas (TDG) supersaturation on fish living downstream of dams is one of the main ecological risks of high dam construction. A strategy for mitigating the negative effects is needed urgently since many high dams are under construction in the upper reaches of the Yangtze River in China. Experiments on the hatching process of David’s schizothoracin were carried out and the results show that the hatching rate decreased with increasing TDG levels, and that most eggs hatched within a very short time in the higher TDG saturation groups. By using a stereomicroscope, damages to the head, yolk sac, body, anus, etc. were found in larvae which hatched in TDG supersaturated water. Results show that the lesion rate increased with increasing TDG levels. Furthermore, 7-d-old David’s schizothoracin were exposed to TDG supersaturated water levels of 100%, 105%, 110%, 115%, 120%, 125%, 130%, 135%, and 140% for testing their tolerance to TDG supersaturation. We found that the median lethal concentrations (LC50) for 13, 14, 20, 35, 52, 73, and 96 h exposure were 138%, 138%, 134%, 130%, 129%, 128%, and 126%, respectively. The median lethal times (LT50) were 7.49, 11.04, 19.25, and 35.38 h for exposure to water with TDG levels of 145%, 140%, 135%, and 130%, respectively.