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The system of Chaohe river basin water resources sustainable development is a large complex nonlinear one. Based on the sustainable development theory and the method of system dynamics, using advanced Vensim language as tool, system dynamics model of Chaohe river basin water resources sustainable development is established. Water resources sustainable development factors have been imported. Water resources with society development, population, economy, science & education and environment have built as a comprehensive general system. The demand of water consumption meeting Miyun reservoir in the future is studied. Development status in the future has been processed dynamic emulation program of Chaohe river basin existing different policy & condition by adjust control parameter to offer decision-making & sustain for establishment development planning and adjust various policies of Chaohe river basin.