The study on the sustainable utilization capacity of water resources is of great significance for the realization of sustainable water resources management and development in the water-scarce regions of Northwest China. It provides insights into the potential for sustainable utilization of these resources. To evaluate the sustainable utilization capacity of the Huangshui Basin, a comprehensive evaluation index system was constructed based on three aspects: climate factors, water resources systems, and socio-economic factors. The evaluation was conducted using two methods: the fuzzy comprehensive evaluation model and the ELECTRE III evaluation method. The results indicate that the Huangshui Basin's water resources, as a whole, exhibit a medium sustainable utilization capacity. Climatic factors and socio-economic characteristics are the main factors affecting the sustainable utilization of water resources in the Huangshui Basin. Based on the results, measures such as strengthening the introduction of external water resources, enhancing water resources management, and implementing comprehensive remediation efforts in the basin can improve the level of sustainable use of water resources. The research results can provide a reference for decision-making regarding the evaluation of sustainable utilization capacity of water resources in water-scarce areas and the optimization of water resources management in the Huangshui Basin.