An evaluation index system for the development level of water resources in Hu’nan Province is established through applying the grey relation analysis. By using the APH comprehensive evaluation method, the weight of each index is determined, and the development level of regional water resources is analyzed and evaluated. As a result, the comprehensive grade in most regions is less than 0. 6, and thus it can be concluded that the development level of regional water resources in Hu’nan Province is low. The study indicates that based on sustainable utilization of water resources, exploring and using the water resources in Hu’nan Province should adopt reasonable measures such as water saving, water preserving and st rengthened management.