Indoor simulation experiment was carried out to evaluate the formation and consumption rates of methane (CH4) in Xiangxi Bay of the Three Gorges Reservoir (TGR), China. The results show that both the CH4 formation and consumption rates were significantly positively correlated with temperature. CH4 efflux decreased with rising temperature due to its potential increasing oxidation rate. CH4 oxidation in surface sediments accounted for 51.8% of the total production and it even reached to 77.4% at 356C. The methane oxidation rate in water column ranged from 1.26 to 4.65 mg/(m(2)h), of which the average and greatest rate accounted for 46.7% and 73.9% of CH4 production respectively under the condition of 30 m water column and 35 degrees C. The methane oxidation may increase by 41.04 mg/(m(2)h) under average water level of TGR (160 m), and most methane resulted from sediments can be oxidized in the water column.