Abstract: With the acceleration of urbanization process and the enlargement of land for construction use, management and macrocontrol of the supply and demand of construction land become more and more urgent. The management and adjustment of land for construction use is based on accurate analysis of its supply and demand. As a restraining factor for urban development, water resources indirectly influence the scale of supply and demand of construction land. Considering applicable water resources as a restricting factor for urban development, the paper tentatively constructs a model of construction land system dynamics under the restraint of water resources, and analyzes the three subsystems of population, economy and construction land, illuminating the interrelationship between the variables of those subsystems. Thereby, the paper clarifies the driving and restricting factors for the supply and demand of construction land, laying foundation for the objectives of macro-controlling construction land and the selection of appropriate methods.