Water scarcity of the Shiyang River Basin becomes more and more severe in recent years, which has led to a rapid degradation of ecological environment and human civilization created for a long period of time in the Minqin Oasis at the down stream and has caused deep concerns of all circles of life. The paper focuses on the utilization of water resources of the Minqin Oasis in different periods, analysis of the methods of ecological environment rehabilitation and reasonable water utilization. It shows that the Minqin Oasis will be destroyed if there are no new rescuning measures, according to balance calculation of water demand and supply. The paper delivered three proposals for the sustainable development of the Oasis and adequate water recovery of the Qingtu Lake at the end of the Shiyang River.