Accurate analysis of the impact factors of water consumption and scientific prediction of water consumption are of important significance to achieve the optimal allocation of water resources and alleviate the contradiction between economic growth and water resources. Water consumption of Shandong Province was analyzed from 2001 to 2010. The results showed that the industrial water consumption accounts for the largest proportion in the water consumption structure, followed by domestic water consumption and ecological water consumption. The first industrial water consumption accounted for 75% of total water consumption, which was the largest proportion The total water consumption showed a slow increasing trend since 2005 while the second industrial water consumption showed a decreasing trend. The variations of third industrial water consumption and domestic water consumption were insignificant, while the ecological water consumption showed an increasing trend. The main factors affecting water consumption included the output value of three industries, irrigated area, and population. In addition, rainfall has a certain impact on the first industrial water consumption.