The input-output analysis method was applied to construct a water resource Input-output table on the basis of the data collected in 2007 in Gansu Province.This study focused on the impacts of water resources on the industrial and economic development of Gansu Province by analyzing water use rate,water multiplier and water consumption.Furthermore,virtual water transfer between industry and economy system virtual water transfer among different industries,and the flow direction of virtual water in economic system were addressed.The results indicated that agriculture(plantation for example) had the highest water use rate and total volume but had little contribution to the indirect boost of economic system by water resource.Some water resources virtually flew to manufacturing and then subsequently to construction and service industry.In addition,considerably amount of water flew to other provinces.During the process of promoting the water saving economic system,we should reduce the scale of agricultural production and improve the efficiency of agricultural water use.We should also readjust industrial structure,considering the relevance of water resource consuming between the industries.In addition,we should take into account the factors reducing the consumption of goods by the clients.