Water cycle includes natural water circulation and social economic system water cycle. The concept of virtual water provides a new method and means for studying social water circulation. This paper is based on the theory of water circulation in social and economic system, using input-output analysis method quantitatively describes the Tarim River basin of social water cycle paths and analysis of water resources management in Tarim River basin sustainable development process of the key issues. The results show that the main sectors of virtual water export in the Tarim River Basin are agriculture, petroleum, natural gas and food industry. Agricultural water accounts for more than 98% of total water consumption, most of which is transferred to the food and textile industries, and the food industry export water from the agricultural sector. Shandong Province is the largest virtual water transport area in the Tarim River Basin. The main sector of virtual water input in the Tarim River Basin is the metallurgical industry. Finally, in view of the problems arising from the inter-industrial and inter-regional social water circulation in the Tarim River basin, the paper puts forward the ways and strategies of regulating agricultural and industrial water use in the Tarim River Basin.