Based on the problems in groundwater development and utilization in the urban area of Xianyang,a conceptual model of hydrogeology and a three-dimensional mathematical model of groundwater flow are developed and the variation trend in groundwater levels under different climate scenarios is simulated. The results of prediction show that the groundwater levels will rise and are related closely to the climatic factors under the future increasing rainfall climate scenarios. Groundwater recovery effect is more obvious when the extraction reduces greatly. The main reason for the continual decline in regional groundwater levels is the longterm increase in groundwater exploitation by human being. Broaden sources of income and reduction in expenditureare effective ways to restore the groundwater environment.