Ecological water of Lake Dianchi and its inflowing rivers has been occupied and experiences serious shortage, which is one of the fundamental causes of serious water pollution with worsening trend and difficult to be constrained. Based on the analysis of natural-social dualistic water cycles, together with the construction of the water pollution prevention system in the basin,this paper presents a framework of healthy water cycle and takes MIKE BASIN as the simulation platform to integrate lake sewage interception, in-lake ecological restoration, lakebed sludge dredging, agricultural non-point sources management, and inflowing river renovation as an organic whole. Centred on the guarantee of residential water, industrial water, irrigation water and ecological water, joint disposals of multi-source water resources are adopted to meet the water demands of Lake Dianchi and its inflowing rivers. Moreover, function orientation of urban river clarifies the route of sewage treatment and circulating utilization. Taking water balance of Lake Dianchi as a premise, the tail water of the municipal sewage of Kunming City is supposed to discharge outside the basin as far as possible. Simulated results indicate that if multi-year average 5.72×10⁸ m³ water is transferred to Lake Dianchi, all recycled water may be deployed towards the downstream Anning-Fumin industrial corridor as industrial water.