The security and sustainable development of water resources is crucial for the green and circular development of the Qinba Mountain Area, and is of great significance in seeking paths for regional green and circular development. This paper summarizes the current status in the Qinba Mountain Area from the aspects of water-conserving society construction, drinking water security in rural areas, water resource fee-to-tax reform, and pilot water-right construction; it also analyzes the problems in terms of water source use, water use awareness, pollution control, and resource reforms. Based on national government plans, an overall development strategy is proposed as placing a high priority on saving water resources, improving the policies on water resource economy, and focusing on science and technology support. The corresponding strategic countermeasures for the sustainable development of water resource economy are listed as: implementing the policies for water saving and increasing the utilization of unconventional water sources; improving the construction of sewage treatment facilities and strengthening the security of drinking water in rural areas;comprehensively promoting the reform of water fee system and expediting the construction of water rights system; establishing novel development models for the water resource economy by relying on the resource advantages. The sustainable development of the water resource economy in the Qinba Mountain Area will be supported by coordinated management of water resources, water environment,water ecology, water industry, and water culture