Abstract: The contradiction between the supply and demand of water resources became more and more obviously in hilly region of Sichuan, and what’s more, the shortage of water resources had already become the main factor, which restricted the development of local economy. In order to develop and utilize water resources reasonably and improve its utilization efficiency, the paper, analyzed and discussed the present situation in the hilly region of Sichuan Basin from three aspects: the amount of precipitation, the quantity of water resources and water quality. Furthermore, the development and utilization extension of water resources was analyzed from the present situation of hydraulic engineering, available water supply and the supply and demand situation of water resources, etc. As a result, the existing problems of the present utilization of water resources were pointed out, and then several countermeasures which could promote the sustainable utilization of water resources were put forward, such as broadening water resources positively, water saving, water environment protection and strengthening water resource management.