As an important part of water resources, groundwater plays an irreplaceable role in economic and social development. However, in recent years, with the large-scale exploitation of coal resources, it has become increasingly important to protect groundwater resources and rationally and efficiently treat mine water. The large-scale development of coal in Daliuta Coal Mine leads to the contradiction of water resources utilization. Based on the production status and water resources utilization of Daliuta Coal Mine, the influence of coal seam mining on groundwater resources in this area is analyzed. Furthermore, the mine water recycling technology is put forward, which opens up a new way and technical path for the protection and utilization of water resources in coal mining, and realizes the coordinated development of safe and efficient large-scale mining of coal resources and water resources protection and utilization. The technology is popularized and applied in the area where Daliuta coal mine is located, and the mine water circulation system is established, so that the mine water can be used for underground and ground production and life, and the underground water resources can be used efficiently to promote the development of ecological civilization construction in this area, which provides a reference for the protection and utilization of water resources in coal mining in western China.