Abstract: Water resources shortage and water pollution are the main aspects of water environmental deterioration. Unfortunately, the two problems exist in most regions of China and are getting worse. Immoderate Social Water Cycle (SWC) is the ultimate reason for water environmental deterioration. So the only way to restore the water environment is to establish the healthy SWC. The strategies for water environmental restoration include the continence of water resource exploitation, advanced wastewater treatment and effective reclamation, treated sewage sludge back to cropland, urban rainwater cycle rehabilitation, non-point pollution source control and integrated water resources management etc. This article summarized the water environmental restoration practices in China, and healthy SWC plan in China's Middle-Long Term Plan for Science and Technology Development (2006-2020), as well as engineering practices of healthy SWC construction in Shenzhen, Dalian and Beijing. Finally it pointed out the urgent tasks in water environmental restoration, which include establishment of laws, education, research on relative technologies and demonstration project construction, etc.