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This paper established a by sector water consumption and economy analysis integrated model with input-output analysis method. The model can be used to identify the relationships between economic activities and the direct water consumption, the total water consumption and the intersectoral water transaction for detailed sectors in regional economy. The method is applied to Hai River Basin in China that is characterized by water shortage. The results found that in Hai River Basin, agriculturedoi:10.4236/jwarp.2012.45029 fatcat:rahtaqyznvczjn6ekh6ue74pu4