Through the linear regression model and grey model GM (1, 1), this article predicts China water resources situation in 2025, so as to determine the optimal water strategy, and achieve the optimal allocation of water resources. We establish the linear regression model about the per capital water resources quantity. Then, the water shortage and water shortage degree of each province in 2025 can be calculated by gray model GM (1, 1). The results indicate that forecasts and the results are in good degree of agreement, and the flexibility and practicality of the model is tested once again.