Although the quantity of household water consumption does not account for a huge proportion of the total water consumption amidst socioeconomic development, there has been a steadily increasing trend due to population growth and improved urbanization standards. As such, mastering the mechanisms of household water demand, scientifically predicting trends of household water demand, and implementing reasonable control measures are key focuses of current urban water management. Based on the categorization and characteristic analysis of household water, this paper used Maslow's Hierarchy of Needs to establish a level and grade theory of household water demand, whereby household water is classified into three levels (rigid water demand, flexible water demand, and luxury water demand) and three grades (basic water demand, reasonable water demand, and representational water demand). An in-depth analysis was then carried out on the factors that influence the computation of household water demand, whereby equations for different household water categories were established, and computations for different levels of household water were proposed. Finally, observational experiments on household water consumption were designed, and observation and simulation computations were performed on three typical households in order to verify the scientific outcome and rationality of the computation of household water demand. The research findings contribute to the enhancement and development of prediction theories on water demand, and they are of high theoretical and realistic significance in terms of scientifically predicting future household water demand and fine-tuning the management of urban water resources.