Fujian reservoirs in southeast China are important water resources for economic and social sustainable development, although few have been studied previously. In recent years, growing population and increasing demands for water shifted the focus of many reservoirs from flood control and irrigation water to drinking water. However, most of them showed a rapid increase in the level of eutrophication, which is one of the most serious and challenging environmental problems. In this study, we investigated the algae community characteristics, trophic state, and eutrophication control strategies for typical subtropical reservoirs in southeast Fujian. Surface water samples were collected using polyvinyl chloride (PVC) plastic bottles from 11 Fujian reservoirs in summer 2010. Planktonic algae were investigated by optical microscopy. Water properties were determined according to the national standard methods. Shallow reservoirs generally have higher values of trophic state index (TSI) and appear to be more susceptible to anthropogenic disturbance than deeper reservoirs. A total of 129 taxa belonging to eight phyla (i.e., Bacillariophyta, Chlorophyta, Chrysophyta, Cryptophyta, Cyanophyta, Euglenophyta, Pyrrophyta, Xanthophyta) were observed and the most diverse groups were Chlorophyta (52 taxa), Cyanophyta (20 taxa), Euglenophyta (17 taxa), Chrysophyta (14 taxa). The dominant groups were Chlorophyta (40.58%), Cyanophyta (22.91%), Bacillariophyta (21.61%), Chrysophyta (6.91%). The species richness, abundance, diversity, and evenness of algae varied significantly between reservoirs. TSI results indicated that all 11 reservoirs were eutrophic, three of them were hypereutrophic, six were middle eutrophic, and two were light eutrophic. There was a strong positive correlation between algal diversity and TSI at P < 0.05. Our canonical correspondence analysis (CCA) results illustrated that temperature, transparency, conductivity, DO, TC, NH(4)-N, NO(x)-N, TP, and chlorophyll a were significant environmental variables affecting the distribution of algae communities. The transparency and chlorophyll a were the strongest environmental factors in explaining the community data. Furthermore, the degradation of water quality associated with excess levels of nitrogen and phosphorus in Fujian reservoirs may be impacted by interactions among agriculture and urban factors. A watershed-based management strategy, especially phosphorus control, should be developed for drinking water source protection and sustainable reservoirs in the future. All investigated reservoirs were eutrophicated based on the comprehensive TSI values; thus, our results provided an early warning of water degradation in Fujian reservoirs. Furthermore, the trophic state plays an important role in shaping community structure and in determining species diversity of algae. Therefore, long-term and regular monitoring of Euglenophyta, Cyanophyta, TN, TP and chlorophyll a in reservoirs is urgently needed to further understand the future trend of eutrophication and to develop a watershed-based strategy to manage the Cyanophyta bloom hazards.