Based on the water poverty theory, the water poverty assessment indicator system for Dalian City was developed in respect to five components(resources, facilities, capacity, utilization, and environment). The improved TOPSIS method based on entropy weight was used to evaluate the water poverty status in Dalian City from 2006 to 2015, and the obstacle model was used to analyze the obstacle indicators. The results indicated that, the water poverty situation in Dalian City was improving in the study period, and the comprehensive evaluation value increased from 0. 249 to 0. 314; the Jinzhou District, Lyushunkou District, and Changhai County had the most serious water poverty; the general obstacle indicators that affected the water poverty in Dalian City included the number of sanitary toilets, the number of villages supplied with tap water, the proportion of vegetation coverage area, surface water availability, groundwater availability, and the percentage of employment at the end of a year. Through diagnoses of the obstacle indicators, the existing problems of water poverty control were found out, which could help to promote the sustainable development of water resources in Dalian City.