This paper addresses the water resources management problems in China. Considering the pressure of increasing population, present barriers to alleviation of floods, droughts and water environmental problems have been carefully analysed from the Chinese practical background. The discussions involve water resources and problems in managing water supply and demand in China. Due to very uneven distribution of precipitation in space and time, China frequently suffers from floods and droughts. But the coincidence of the rainy season with the warm season is favourable to crop production and thus results in high population density in the eastern part of China. In order to avert disastrous consequences of hydrological extremes—floods and droughts now and in the future—studying sustainable development of water resources in China is an imperative. Based on results of such studies, existing barriers to sustainable development of water resources have to be removed. A number of feasible measures adaptable to the specific conditions of China are proposed. A step-by-step strategy is suggested to keep abreast of the changes of the objective circumstances, and to provide for public consensus.