Abstract: In order to comparatively analyze Tianshui City residents’ spending on basic needs, marginal propensity to consume, the present situation and the changes of consumption structure. Based on Gansu Province and Tianshui City residents’ consumption structure from 2004 to 2010, using the ELES model, the author dynamically analyzed every project consumption and change tendency of urban residents in Gansu Province and Tianshui City with Eviews software. The results showed that: the consumption structure of the urban residents in Tianshui City was increasingly transformed from the ‘subsistence stage’ to ‘development stage’ and ‘enjoyment stage’. The influence of income level the food expenditure was still living in the most important level, as the economy grew, people began to pay more attention to leisure entertainment and self-cultivation, convenient and comfortable travel, communication the convenient, quality living environment and children’s education level and other issues. Such consumption had a larger market and the space in Tianshui City. All of those prompted that Tianshui City residents’ consumption structure was irrational, was mainly used to meet the basic needs of life, but tourism, cultural and educational entertainment, transportation and communications, and other components such as consumer spending potential had a large consumption potential.