This paper comprehensively evaluated the quantity and quality of water resources and their essential characteristics of natural spacial and temporal distribution in Dunhuang City of Gansu Province,China.The result indicated that the large scale utilization of water resources for irrigation has greatly affected the process of water cycle in this region.At the same time,construction of hydraulic engineering has also exerted severe impacts on eco-environment,such as drying up of the river,sharp drop of groundwater table and aggravation of land desertification.The authors presented the measures and suggestions for effective utilization of the water resources,and for ensuring healthy and sustainable development of society and economy and exerting the advantage in tourism of Dunhuang,including:1) to readjust and optimize industrial structure and develop low water-consumed eco-type industry like tourism by a big way;2) to intensify water environmental protection and strictly control groundwater exploitation; 3) to develop water-saving irrigation technology and raise water use efficiency; 4) to pay attention to eco-water utilization and guarantee eco-environmental construction and 5) to implement water diversion project from Haerteng River to Danghe River as soon as possible and optimize allocation of water resources.