Based on the TM images of the oasis irrigation area in Tailan River in 2000 and 2005 and using the RS, GIS, and landscape ecology method, this paper calculated the transformation matrix of the landscape mosaics and analyzed the relationship between the land use change and the dynamics of runoff and groundwater resources and their exploitation in the oasis irrigation area. Results showed that from 2000 to 2005, farmland area and water area increased and the annual average increased 3603. 8 and 151. 4 hm², respectively. The forest and grassland decreased constantly and were reduced by 2247. 07 and 14325. 9 hm² . In all, the greenbelt decreased 16 572. 97hm² . The grassland and forest turned into farmland from transformation matrix and the ratio was 13. 97 % and 5. 93 %, respectively. Although runoff decreased distantly, the quantity of exploited groundwater increased drastically from 5. 9 ×105 m³ in 1989 to 1. 39 ×107 m³ in 2003. As a result, the area of irrigated field and the quantity of wells increased quickly. Moreover, groundwater resources were exploited severely and the level of groundwater decreased instantly. The ratio of agricultural water to ecological water was irrational, agricultural water expanded quickly, and ecological water dwindled distinctly.