Abstract: It is suggested that the main reasons resulted draught and breaking off Yellow River are seepage and evaporation through analysis of the difference between traditional reservoir and new type groundwater reservoir.A geological method to solve draught problems is proposed by building new type of groundwater reservoir in alti-piano river basin. This kind of reservoir can prevent water from seepage and reduce near 90 percent evaporation loss and make water resource circling on the spot. The utilization rate of water might be increased and flow equi-Librium can be maintained with this method. The only way to restore ecological environment and cure draught radically and keep permanent development in western is to make full use of limited water resource.