City water stress has become the bottleneck of the city''s economic development.With the help of the grey relational analysis, the paper ranked the influence factors affecting water consumption in Taiyuan City. The results indicate that the reuse of water is the main factor,followed by population and water price,percapita income and gross industrial output less affecte water consumption. Accordingly,this article proposes to raise water reuse in order to realize water cycle; controlling population can coordinate the contradiction of water supply and demand ;regulation of water price can promote water saving so that obtain save water and promote the economic development.