Abstract: The occurring conditions of the geothermal water in Xi'an City, Shaanxi Province and present situation of its development and utilization are comprehensively analyzed. The result shows that, continuous overdrawing of the geothermal water for many years has caused falling of groundwater level and decreasing of groundwater resources. With discussion on rational development and utilization of groundwater resources in the city, suggestions and measures on the sustainable development of geothermal water in Xi'an are proposed.