Abstract:The contradiction between supply and demand of water resources is prominent in Penglai District of Yantai Municipality. Under the new situation of taking water resources as the biggest rigid constraint, the existing problems in promoting the intensive, economical and efficient use of water resources are analyzed. Countermeasures were proposed from four aspects, including improving the coordination and cooperation mechanism of water resources management, carrying out regional water rights trading, promoting the measurement of water intake by "electric discounting as water fee" in agricultural irrigation machinery well, and increasing the utilization of unconventional water sources, so as to provide references for sustainable utilization of water resources and promoting high-quality economic and social development in Penglai District.