The compilation of water resources balance sheet to protect water environment is an important strategic measure. Firstly, the developments of water resources-environment integrated accounting both at home and abroad were systematically introduced in this paper. Next, based on advanced international experiences, the key issues on theoretical basis and techniques for building up the balance sheet of water resources in China were discussed. Finally, a conceptual framework of water resources balance sheet including the determining principles for asset liability, design of the sheet and water resources value accounting system was developed, the technical route of water resources balance sheet which meets the demand of water resources management in China was preliminary established and the extended effects of the sheet in integrated water resources management were also discussed. It might be useful for studying balance sheet of water resources.