[Objective] To analyze the relation between water resource consumption and industrial structure quantitatively in Wuwei City, Gansu Province in order to provide references for making development policies for cities in arid areas. [Methods] The IGT model deduced by IPAT and optimized modeling software LINGO 10.0 were used. [Results] The economic growth of Wuwei City depended heavily on water consumption under the condition of unrestraint water supply during 1998-2004. After the water restriction policy came into force, the degree of economic growth dependence on water consumption began to fell sharply in 2005 and was in a state of relatively steady decline after 2008. Meanwhile, the best model for reducing the demand of water consumption by setting scenarios was found. The water consumption in 2015 was 1.67×10⁹ m³ and the GDP was 4.40×10¹⁰ yuan. [Conclusion] Under the condition of accelerating economic growth, adjusting the industrial structure reasonably and strengthening the weak water control of water saving, it would be best for Wuwei City to achieve economic and water consumption steady development.