For the low viscosity of water,lubricating film can hardly formed between the poppet and the sleeve in the water hydraulic valve.A water hydraulic relief valve with annular clearance restrictors in the pilot stage was designed.The working principles and mechanical structure were described.Water hydraulic relief valves dynamic mathematical models and transfer functions were established and derived.The simulation based on the mathematical models showed that the designed valve was unstable.Output feedback compensation was made to stabilize the valve.On one hand,the valves compensating parameters were optimized through simulation;on the other hand,by analyzing the realization and characteristics of the compensation,it was found to be a dynamic pressure feedback compensation.So it can prevent high frequency oscillation transmission between the main stage valve and the pilot stage valve.