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Water is the source of life and is the foundation of natural and economic resources. There is a serious shortage of water resources in the coastal areas of china, especially in the coastal cities north of the Yangtze River. The shortage of freshwater resources has become an important factor restricting the economic and social development in coastal cities and regions. With the increasing shortage of water resources, more and more cities began to rely on non-conventional water supplies such as water transfer, desalination etc. The situation in Qingdao City is even worse. Currently main ways to make up for the lack of surface water in Qingdao include South-to-North water diversion, diverting the yellow river water to qingdao, desalination, water reuse, etc. But which one is more reasonable, can better meet the affordability of demanders and changes of future water demand, and can reach a balance among objective requirements of sustainable utilization of water resources, economic development and so on, there is still no conclusion.Firstly, this article by collected and analyzed dates of water resources in Qingdao, based on the in-depth analysis of surface water, groundwater, south-to-north water diversion, diverting the yellow river water to qingdao, desalination and water reuse and other water resources, combined with externality theory and resource allocation theory of water resources, analyzes the full cost of water supply, especially does a more detailed analysis and determination for the external costs of the water.Finally, combined with the development of Qingdao in the current, based on the minimum cost, this article optimizes the structure of Qingdao City water supply, and puts forward policy and recommendations for national water supply, in the same time, it can provide reference for full cost analysis and optimization of water-use structure.
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