This study aims to develop an effective strategy of sustainable development in order to assure the harmonious development regarding water sources among the ecology, economy and society. Using the SWOT analysis method and the sustainable development theory, the SWOT matrix model was established and the sustainable development strategies were proposed for water sources areas in Shangluo City, Shannxi Prov-ince. Considering the specific reality of water sources, four types of strategies including SO (strength-opportunity), WO (weakness-opportunity), ST (strengh-threat) and WT (weakness-threat) strategy were developed and compared. Furthermore, a series of alternative strategies was developed in response to different actual situations by analyzing the internal and external environments and the SWOT factors in the City. The findings of this study could provide certain references to strategy researches on the sustainable de-velopment of similar water source areas.