Based on a computable general equilibriummodel, the paper analyzes the impact of water supply andconsumption policies on Beijing’s economy and waterresources utilization. The results show that water diversionfrom the South-to-North Water Transfer Project has apositive impact on local economy, while groundwaterresource protection policy may have a negative impact oneconomy. The package of polices may have a positiveimpact on environmental protection and local economy. Andwater price ladder policy reduces water demands of producerand households, which leads to the decrease of water inputsof water supply industry. Because such policy has limitedimpact on other economy sections, there is room for furtherimplement.