The overexploitation of mineral resources in northwestern China has resulted in severe ecological degradation and even desertification in certain mining areas. To support ecological restoration in these arid mining regions, we conducted a study on water conservation and ecological water demand using Bayan Obo as a case study. Based on remote sensing, geographic information systems, and the Integrated Valuation of Ecosystem Services and Trade-offs InVEST model, our study found that the mining area has lost its capacity for water production, with the water source conservation showing negative values. In addition, precipitation levels are far lower than evapotranspiration, making it difficult to retain precipitation. We predicted ecological water demand for the planning years (2025, 2030, and 2035) by combining qualitative and quantitative forecasting methods, with 2019 serving as the base year. The results indicated a downward trend in natural ecological water demand, while artificial ecological water demand exhibited the opposite trend. Changes in natural grassland and artificial green areas in the mining region were identified as the main drivers of changes in ecological water demand.