The construction of water-saving renovation projects can bring substantial benefits to the development of agriculture, but it may also be accompanied by negative impacts, especially in a large-scale irrigation district. Hence, there is always controversy, and it is vital and necessary to investigate the effectiveness of water-saving renovation. In this study, the Yahekou irrigation district, one of the largest districts in China, is selected as the case to explore the beneficial influence and adverse impact. Kriging interpolation, Pearson correlation analysis, and linear regression analysis are employed to study the temporal evolution, spatial distribution, and domain influencing factors. The results show that the water-saving renovation project in the Yahekou irrigation district had significant water-saving benefits during the period of 1998–2021, and the average annual water use of the irrigation district decreased by 61%. Canal lining is an important influencing factor for the decrease in irrigation water use, with a correlation coefficient of −0.538, B of −18.669, and R2 of 0.290. Furthermore, the water-saving renovation of irrigation districts is not the dominant reason for changes in groundwater depth. Meanwhile, the groundwater depth below ground level (the level DBGL) in the irrigation district increased by 82%. The combined effects of atmospheric precipitation, canal lining, river sand mining, and groundwater exploitation have led to a sustained increase in groundwater depth in the study area. The results obtained from this study can provide valuable and scientific reference for agricultural water resource management over the large-scale irrigation district. This article focuses on the impact of water-saving renovation on ecological and technical indicators such as water use and the groundwater DBGL. However, the impact of water-saving renovation in irrigation districts is multifaceted; subsequent research can explore the impact of water-saving renovation projects on society and the economy.