To analyze the water supply and demand in the industrial zones better, and take the uncertainties of water supply and demand into considering so as to make reasonable risk assessment, I use the simulation software Extendsim 7 to develop the water supply and demand simulation system in industrial zone to achieve Dynamic simulation of water demand and supply.using a continuous simulation model, the system enables to flexibly determine the mode of the whole industrial park, to achieve the visual process can be based on the actual situation of water supply of water supply,and provide a graphical simulation results show to the result.Take Wulatehouqi industrial zone in Bayannao er as an example to illustrate that the continuous Extendsim 7 simulation system can simulate the water supply and demand, and predict the risk of water supply.