Based on the LMDI method of aggregate of the sum of polynomial multiplication and vector form, the decomposition framework of population-residential consumption-water intensity in the process of urbanization is established, and the factors influencing the water consumption from 2003 to 2016 are analyzed. The research shows that expansion and urbanization of population positively promote the growth of water consumption, and the effect of the former is stronger than that of the latter. The improvement of residents' consumption level is the absolute leading factor driving the growth of water consumption. The optimization and upgrading of residential consumption structure and the increase of residential consumption rate can effectively suppress the consumption of water resources, and the effect of the former is more significant. The decline in water consumption is mainly due to the advancement of industrial technology. The growth of households' water consumption mainly comes from the effect of water intensity of life. It is further pointed out that we should reasonably control the size and movement of population, accelerate the optimization and upgrading of residents' consumption structure, focus on strengthening the innovation of industrial technology, deepen the potential of agricultural water-saving efficiency, and enhance residential consumption rate to achieve relative water saving under the given economic scale.