The rapid shrinkage of the surface area reflects the long-term deficit water budget of Qinghai Lake. Study of the yearly hydrology and meteorology in the lake catchment basin and the hydrologic factors as well as water budget led to the conclusion that evaporation exceeding the water input resulted in the drop of lake level, thai the obvious decrease of runoff to the lake and precipitation on the catchment accelerated the falling of lake level before 1987. and that increase of about 6.7% in rainfall on the whole basin will balance the lake’s water budget. The rapid shrinkage of the surface area reflects the long-term deficit water budget of Qinghai Lake. Study of the yearly hydrology and meteorology in the lake catchment basin and the hydrologic factors as well as water budget led to the conclusion that that exceeding exceeding water input resulted in the drop of lake level, thai the obvious decrease of runoff to the lake and precipitation on the catchment accelerated the falling of lake level before 1987. and that increase of about 6.7% in rainfall on the whole basin will balance the lake’s water budget .