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Beijing's local water resources have been overexploited and the ecological and environmental pressures exceed the carrying capacity of this densely populated megacity. This article examines the current status of Beijing's water resources with respect to its industrial, residential, and eco-environmental water usage and the challenges it may face in the near future. The article describes the context of water uses, the steps taken by Beijing to alleviate the water shortage problems, and challenges to Beijing's abilities to meet its urgent and future water needs. A multipronged strategy is proposed that aims at both the present problems and the anticipated future challenges. In particular, engineering and institutional approaches for Beijing's successful transition from overexploitation to sustainable utilization of water resources are explained. Actions include reasonable water utilization, water conservation, reclaimed wastewater, and importing water from neighboring areas. We conclude that Beijing must take additional steps in water resource management to ensure its sustainable development that involves continued urbanization sprawls and population growth. Future water resource management strategies should focus on strengthening water demand management through water conservation, efficient interbasin water transfers, use of nontraditional water resources, strategically reserving water supply, and promoting rehabilitation of the eco-environments. [ABSTRACT FROM AUTHOR]