The government has always emphasized the decisive role of market mechanisms in resource allocation, but this is the least obvious in the water resources market. To achieve the goal of promoting the improvement of water supply structure and water using structure and thus improving water resources efficiency, it is necessary to consider both the efficiency of the same water source among different users and the cost of water supply between different water sources for the same user. Through creative use of fuzzy optimization theory to solve the constructed Bi-level programming model, this paper takes the data of Qingdao from 2011 to 2020 as an example to conduct empirical analysis, and obtain the allocation of water resources of different water sources and different users under market competition conditions. At the same time, four scenarios such as changes in water resource fees, changes in sewage treatment fees, full-cost pricing, and agricultural water saving are set for scenario analysis and numerical simulation, and the total cost and water price under different scenarios are obtained. It is conducive to promoting the sustainable development of water resources in Qingdao, and provides a reference for the formulation of relevant policies on water resources in the future.