Description: While urbanization brings economic and social benefits, it also causes water pollution and other environmental ecological problems. This paper provides a theoretical framework to quantitatively analyze the dynamic relationship between water resource utilization and the process of urbanization. Using data from Jiangsu province, we first construct indices to evaluate urbanization and water resource utilization. We then adopt an entropy model to examine the correlation between urbanization and water resource utilization. In addition, we introduce a dynamic coupling model to analyze and predict the coupling degree between urbanization and water resource utilization. Our analyses show that pairing with rising urbanization during 2002–2014, the overall index of water resource utilization in Jiangsu province has experienced a “decline -rise-decline” trend. Specifically, after the index of water resource utilization reached its lowest point in 2004, it gradually began to rise. Water resource utilization reached its highest value in 2010. The coupling degree between urbanization and water resource utilization was relatively low in 2002 and 2003 varying between −90° and 0°. It has been rising since then. Out-of-sample forecasts indicate that the coupling degree will reach its highest value of 74.799° in 2016, then will start to gradually decline. Jiangsu province was chosen as our studied area because it is one of the selected pilot provinces for China’s economic reform and social development. The analysis of the relationship between provincial water resource utilization and urbanization is essential to the understanding of the dynamic relationship between these two systems. It also serves as an important input for developing national policies for sustainable urbanization and water resource management.