As the capital and a major political hub for China, Beijing has undergone a rapid urbanization effect with significant population growth in recent years. At the same time, Beijing has also been suffering from severe water problems such as water scarcity, urban flooding and other issues related to water pollution. These have increasingly generated severe water problems and stymied the pace and scope of sustainable urban development. The critical challenges faced by water resource administrations pertains to the issues of sustainable management of water resources and the relevant actions to be put in place in order to address these water-related problems. In this study, the current water situation of Beijing is described in great detail focusing on water resource amounts, water supply, water consumption and water pollution changes analyzed from historical to recent years. The challenges of Beijing urban water management systems are also analyzed to offer possible solutions in light of the current trends. Finally, a number of useful strategies and action-oriented measures are provided for Beijing's urban water resource administration to assist them in overcoming the current water management challenges and for them to move towards a more sustainable developmental city.