Abstract: Water resource problems is not only a single issue of hydrology, but also a problem of the operation and management modes of national economy. In recent years, driven by national policy of large-scale aids for supporting Xinjiang, Tacheng prefecture, which serves a significant node city in the northwestern inland region of China, has seen a rapid advancement in its socio-economic development. As a result, the urban and rural water consumption has been increasing steadily. This surge in water consumption had once surpassed the locally available upper limit, which has led to certain ecological problems within Tacheng prefecture, such as springs drying up, wetland and grassland degradation, pose a severe threat to the agricultural and pastoral production as well as the natural environment. Conversely, these problems constrain the development of the urban and rural areas. Therefore, by combing characteristics of regional water resources, this paper proposes three strategies to optimize the water utilization structure, including adhering to the natural ecological baseline, developing high-quality and water-saving agriculture, transforming characteristic industries, ultimately achieving both urban-rural development and "Lucid waters and lush mountains".