This paper analyzes public awareness and perception about current issues of environmental and water resources in China in comparison to the socio-economic issues. The ranking, Likert scale, and ordered logit analysis were applied to data from 1773 sample residents in northwest China. The results show that the residents rank the degradation of the ecological environment and water resources as the most important issue, and education, political involvement, gender, employment, and residential location play significant roles in explaining the observed differences in concern. Of the possible environmental and water resource restoration policies, residents ranked water quantity and quality, agricultural and industrial water use, erosion control, vegetation restoration, wildlife habitat, animal brooding and migration services, biodiversity landscape, and eco-tourism from one to nine in order of importance, respectively. The results are relevant for policymaking and imply that environmental restoration is a high public demand. Welfare gains from investments in it would be higher or equal to gains from other socio-economic and livelihood activities. Thus, public policies must emphasize restoring and maintaining a sustainable ecological environment.