Drought in the Southwest China in early 2010 highlights the situation of inefficient utilization o f water resource in the western regions.This paper selects GDP

total investment in fixed assets

total water used

water consumed population as input-output indicators

and takes data envelopment analysis method to evaluate the performance of water resource utilization in the 12 western capital cities in 2008 and 2009.Meanwhile

Malmquist T F P index method is used to analyze time series data from 2000 to 2009.The results areas follows:(1)The utilization of water resource in the western regions is inefficient and t here is a declining trend.The total fact or productivity (TFP)index of the utilization efficiency of water resource from 2000 to 2009 is 0.955.(2)During 2008 and 2009

Chong qing

Xining

Urumqi and Hohhot City are efficient based on DEA

and other cities should adjust according to the experience of the four cities above.The production scale in Cheng du

Kunming

Xian

Lanzhou

Yinchuan and Nanning City are too large

thus it limit the utilization efficiency of water resource.The production scale in Chongqing

Xining

Urumqi and Hohhot City should remain stable while Guiyang and Lhasa should increase the production scale.(3)Technology is the dominant factor in restricting water using efficiency.So

investment in science and technology should been-hanced.In addition

expanding the scale of production and optimizing the industrial structure are also the indispensable way for improving the utilization efficiency of water resource.Finally

the western regions should also increase the propaganda on the rational utilization of water resource.