Abstract: To discuss the interrelationship between water resources utilization of typical city in the northern Jiangsu Province and its urbanization level and provide reference for the cities' future development planning, the evolving characteristics of urbanization in Huaian, Jiangsu between 2008 and 2014 are studied, and grey relational analysis is used to assess the relativity between water use structure and urbanization level. The results show that urbanization level is drastically improved in recent years, but growing potential still remains; urbanization rate of Huaian is highly related to industrial structure and water use structure, production water and industrial water consumption have large impacts on urbanization level. In order to improve urbanization level and promote energy-saving and water-saving practice, major efforts should be devoted to developing the tertiary industry, and transferring surplus labors from primary industry to other industries. The results can provide scientific values for water resources plan and management in Huaian, and even have reference meanings for north Jiangsu and the whole province in construction process of water-saving society.