Abstract: The virtual water is the water used in the production process of goods and services.So far as the water resource utilization is concerned,the physical trading actually implies the virtual water trading,hence,the virtual water trading approach can be used to alleviate the water scarcity in arid regions.Based on the input/output method,the consumption of virtual water in Ningxia in 2002 is calculated and analyzed in a systematic way as a prime-case study,which reflects some difficulties and problems that Ningxia will face once the virtual water strategy,the larger dimension allocation to water resource,is implemented.This method breaks away from traditional solutions,which merely focus on the using of the local water resource. Meanwhile,several new suggestions are put forward for saving water resource in arid regions.