On the basis of introducing the concept of water market and the water market research including both domestic market and foreign market, the system design features of water market are analyzed. The features include the prior distribution of agricultural water right, the close construction of market structure, reasonable price of water obtaining right and water pollution-discharge right and scientific stipulation of total volume of water use and total volume of pollution drainage. The practical significances of basin water market construction on Chinese agricultural production are revealed, which clover safeguarding the safety of agricultural water; effectively alleviating agricultural drought; saving me agricultural production water and improving the quality of agricultural products.