Abstract: Water resources crisis is defined and by water resource quantity, technology of its development and usage, fund and management institution, and the reason of water resources crisis is analyzed. The problem can be resolved through two ways, i.e. taping new resources to increase the supply and saving water to decrease the waste and at the same time through the mutual effort of every body from three directions, i.e. institution, technology and policy. At last, the policies of how to settle the problem of the water resources crisis for government in China are put forward.