Abstract: Virtual water strategy means regions whose water is scarce achieve their water security and food security by importing water-intensive products from those water is abundant, which expands the solution of water resources scarcity to the political-economic system. The particular linkage of population, food, and trade has been the masterstroke of virtual water strategy research. Using the methodology to assess the virtual water content in crop and livestock products, the paper analysed the virtual water content in product and circulating field in the Gonghe Basin. It calculates that the virtual water consumption for urban citizens is 878.43 m 3,while for rural citizens is 1 105.61 m 3. The results showed that the total product-related and consumption-related virtual water amount was estimated to be 19 633.61×104 m3 and 33 073.57×104 m3 respectively,these are over 0.9 and 1.5 times to the statistical water use volume of 2 1907.5 m3. The research also discussed the political implications and potential applicability of virtual water associated with water security,economic benefit and consumption structure in the Gonghe Basin. Virtual water trade is an instrument to achieve water security and efficient water use.