With the development of economy and society and the continued growth of the population, water crisis has become the primary issue in the sustainable development of many regions. The available water resources for Yuhuan county is extremely short and seriously polluted due to the island terrain restriction and the influence of human activities , which makes Yuhuan a typical resources-induced and quality-induced water shortage region. By building the index system of sustainable utilization of water resources , it evaluates the coordinated development of water resources，society，economy and ecological environment, which shows that the main constraints in the sustainable development of water resources in Yuhuan are water shortage，water contamination and low-efficiency water use. Three optimization scenarios are formulated based on the problems to increase available water resources, improve water environment, and raise use efficiency. The result indicates that compared with water excavation, high strength water saving and vigorous pollution control can promote the water sustainability more efficiently.