The virtual water trade is an instrument to achieve water security and efficient water use and the Virtual water trade illustrates the interactions in the coupled human-environment system. In this paper

the author introduces systematically the theory

indicators system and method of virtual water analysis

and expatiates concretely the application of virtual water through virtual water trade of main countries and regions. In the end

some problems and advices are indicated. It is serious that water resources are short to china and the regional difference of water resources allocation aggravate the water lack. The virtual water concept offers the possibility to analyze the impacts of consumption patterns on water use. So the study of virtual water is important to sustainable development of economy and society.