As the most important natural resource in production and daily life, the shortage of water resources has become a global problem. The increase in population and rapid economic development have led to problems such as high consumption of freshwater resources, severe water pollution, and widespread overexploitation of groundwater. Due to the backwardness of industrial production methods and insufficient understanding of water crisis in China, there are phenomena such as low utilization efficiency and serious waste in the process of utilizing water resources, which further exacerbates the shortage of water resources. Water resource problems have become a bottleneck that restricts economic development and urbanization. The effective utilization and virtuous cycle of industrial and domestic water in cities are of great significance for the rational allocation of water resources and sustainable economic development. This article studies the intensive and economical utilization path and circular development model of urban water resources. It analyzes the management model, water conservation model, clean production model, and sewage treatment and reuse model of urban water resources from three aspects: source water-saving utilization analysis, process management, and end cycle utilization. The study proposes methods for intensive and economical utilization of water resources.