Abstract: Based on the WSR (Wuli-Shili-Renli) system theory framework, with Wuwei City as the empirical object, this research systematically dissects the key bottlenecks in the modernization construction of rural water conservancy in arid regions. The research discovers that the modernization construction of rural water conservancy in Wuwei City is confronted with challenges such as aging infrastructure, insufficient regulation and storage capacity, and intensified ecological pressure; the exist structural contradictions like fragmented systems and lagging technology promotion; the behavioral impediments like weak management and maintenance capabilities and low social participation. It proposes a multi-dimensional modernization development path centered on the construction of intelligent monitoring networks, taking water rights trading pilots as a breakthrough and supported by community co-governance mechanism.