Soil erosion is one of the most serious environment problems in China. Soil and water conservation (SWC) measures play an important role in reducing streamflow and sediment yields. A nested watershed approach, together with the Mann–Kendall trend test, double mass curve, and path analysis were used to quantitatively explore hydrological effects of SWC measures in the Tingjiang River Watershed. Results showed the annual streamflow and sediment yields tended toward a remarkable downward trend since the implementation of SWC measures during 1982–2014, indicating that SWC measures produced significant hydrological effects. The contribution of precipitation to annual streamflow increased from 71% to 79% from the periods 1982–2000 to 2000–2014, indicating decreases in annual precipitation after 2003 and stronger impacts on streamflow than that of SWC measures. However, the contribution of SWC measures to sediment yields increased from 11% to 64% from 1982 to 2014 and gradually dominated contributions to the sediment yields in the watershed. An ecological threshold was established at which the proportion of the cumulative afforestation area due to SWC reaches 10% of the whole watershed, and the remarkable improvements of hydrological effects in the watershed can be observed. These findings could be used to evaluate performance of SWC measures in watersheds.