Based on the indicators of water consumption and water use efficiency in Shenzhen from 1995 to 2016, this paper analyzed the change characteristics of total water consumption and water consumption by industries in Shenzhen from 1995 to 2016, analyzed the main driving factors affecting the change of water consumption, and evaluated the water saving potential of industry, urban public servies and residents. The results show that the total water use in Shenzhen since 1995 can be divided into two stages: 1995—2008 and 2008—2016. In the first stage, the total water use continued to grow rapidly with the economic and social development. In the second stage, with the adjustment of industrial structure and the improvement of water use efficiency, the growth rate of the total water use in Shenzhen decreased significantly, showing a slow rise in fluctuation. The continuous expansion of Shenzhen’s economic scale has a significant positive driving effect on the total water consumption, but the adjustment of industrial structure and the improvement of water use efficiency have obviously inhibited the excessive growth of water consumption, and the inhibition of water use efficiency is more prominent in recent years. At present, the water use efficiency of Shenzhen is at a relatively advanced level, but it is still further improved. In 2020, the water saving potential in Shenzhen is 245 million m³, about 13% of the total water consumption in 2016.