The water supply system in Shanghai provides about 2.55×109 m3/a,of which more than 50% is derived from the Upper Huangpu River Watershed. During the process of rapid urbanization and industrialization,the role of watershed management in sustaining clean drinking water quality at surface sources is emphasized in Shanghai. This paper proposes an integrated watershed management (IWM) approach in the context of the current pressures and problems of source water protection at the Upper Huangpu River Watershed in Shanghai. Based on data sets of land use,water quality and regional development,multi-criteria analysis and system dynamics techniques were used to evaluate effectiveness and improve decision-making of source water protection at a watershed scale. Different scenarios for potential source water quality changing from 2008 to 2020 were predicted,based on a systematic analysis and system dynamics modeling,a watershed management approach integrating land use prioritization and stakeholder involvement was designed to conserve the source water quality. The integrated watershed management (IWM) approach may help local authorities better understand and address the complex source water system,and develop improved safe drinking water strategies to better balance urban expansion and source water protection.