In Yuqia Basin, the climate is arid and the ecologic environment is fragile, and shortage of water resources has seriously restricted the sustainable development of local economy. In order to meet the needs of industrial and domestic water in the Yuqia Basin, numerical simulation was used to evaluate the groundwater resources and potential for exploitation. The results showed that the mathematical model and calculation parameters used were mainly in accordance with practical situation. The calculated value of the underground water level is consistent with measured value during the period of identification and validation. The total recharge of groundwater resources was 22.02×10⁴ m³/d, and the total drainage was 21.95×10⁴ m³/d at present. The Yuqia River leakage is the main supply source of groundwater. There is no significant effect on area of wetland when water source place exploited by 2.5×10⁴ m³/d at alluvial-diluvial fan of Yuqia River. After long-term exploitation, the spring flow reduces from 1.42×10⁴ m³/d to 1.01×10⁴ m³/d and wetland area reduces by 32.7% of original area. The calculation of water balance shows that it is safe to the Yuqia Basin, Da Qiadam Lake, the Mahai Basin at downstream of Yuqia River and wetland under the condition of water source place exploited by 2.5×10⁴ m³/d.