The related time series data of water resources and economic growth in Jiangsu Province from 1995 to2013 are selected to perform empirical analysis by using the VAR model. Based on the stability and co-integration tests on variables, the characteristics of long-term equilibrium relationship and dynamic effect between water resources utilization and economic growth in Jiangsu Province are analyzed by using the generalized impulse response method and variance decomposition method. The results show that the level of impact response of economic growth in Jiangsu Province to the water resources utilization in the industry is the highest, and that to the domestic water is the smallest. It indicates that the acceleration of the industrialization process in Jiangsu Province will promote its economic growth, and the behavior of wasting water will inhibit its economic increase. The economic growth plays an important role in the variance decomposition of water resources utilization in Jiangsu Province, and the contribution degrees of various variables of water resources utilization to the economic growth are low. It is revealed that much attention should be paid to the pressure of water resources utilization, and more attention should be paid to the shortage, pollution and waste of water resources in Jiangsu Province.