Water　shortage　and　water　environment　deterioration　are　becoming　the　bottleneck　of　the　continuous　socioeconomic　growth　of　China　in　the　21st　Century.　Based　on　the　development　of　water　utilisation　and　the　natural　matter　cycle　rule,　the　authors　argued　that　the　fundamental　approach　to　resolve　the　water　crises　and　achieve　the　sustainable　utilisation　of　water　resource　is　to　establish　a　healthy　water　cycle.　The　key　strategy　to　establish　this　is　advanced　wastewater　treatment　and　recycling　to　entire　cities.　The　successional　researches　and　practices　of　sustainable　water　utilisation　and　water　environment　restoration　in　Dalian,　Shenzhen,　Beijing　and　the　north-east　region　were　presented.　These　projects　were　the　initial　applications　of　the　primary　healthy　water　cycle　theory,　and　indicated　that　the　Chinese　water　industry　gradually　tends　to　the　water　environment　restoration　and　water　recycling.