Benefit from the favourable geographic conditions, the convenient transportation, the abundance of mineral resources and the solid industrial foundation, the eastern part of He-bei province will be the important industrial base in the Beijing-Tianjin-Tangshan area. Following the coal mine exploitation, the iron and steel industry will be dominated in the area. The present water supply for urban and industry use is limited by the inadequare water resources system. Researching into the conditions of the water resources and the development of industrial water supply, this paper discusses th exploitation of water resources and principal layout of the facility of water supply, and suggests that it is of great significance to build the Taolinkou Reservoir. Meanwhile, the paper proves the reliability of the water resources for establishing a large industrial base in eastern Hebei Province.