| Summary: | The Gompertz growth curve is used to describe the urban water population, the linear function is used to represent the per capita disposable income, and the domestic water demand is described combined with the factors of population, income, and the water-saving consciousness. The VES production function is used to describe the production function of the domestic water supply. Combined with system dynamics, the supply and demand management model of urban domestic water in Jiangsu province, China, is developed. The process of water supply investment and labor input in the urban domestic water system is studied with two depreciation methods: the straight-line depreciation method and the sum of years digits method. In the case that the water consumption population is expected to decline, four water demand scenarios composed of different per capita disposable income and the growth rate of water-saving consciousness are investigated. Investment and labor input are taken as control variables to conduct water supply and demand simulations for the four scenarios. The results show that the control schemes in all four scenarios reach a balance between water supply and demand. Moreover, the investment of the sum of years digits method is larger than that of the straight-line depreciation method in 2005–2019 but less than that of the straight-line depreciation method in 2020–2034. The sum of years digits method has the characteristics of more depreciation in the early stage and less depreciation in the later stage, which is conducive to timely compensation for the large loss of fixed assets in the early stage.
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