Abstract: Tengger Desert and Badain Jaran Desert are gradually forming encirclement situation at Qingtu Lake in Minqin. Therefore it is of significance to input water into Qingtu Lake and form water body for vegetation restoration and environmental remediation in the Shiyang River watershed. In this paper, based on relative hydrological data and high resolution remote sensing image data of 2010, 2011 and 2013, the author adopted object- oriented classification method and studied areas of water and vegetation in the region statistically. The results showed that the fold-increase of water area and the fast-raise of underground water level had been achieved with superimposed effect of water input. With the changing of water body, vegetation of Phragmites australis was formed by water surroundings, but a large area of reeds distribution fell behind the formation of water body, and the area of Nitraria tangutorum decreased around the water body. The study proves that the formation of artificial water body could influence regional ecological environment restoration which results in the change of regional plant community.