Urban wetlands play a crucial role in regulating the water cycle of the human-earth system. With the development of cities, the problem of water scarcity has become increasingly prominent. Therefore, exploring the role of wetlands in alleviating urban water resource crisis is of great significance. Based on the nature-society binary water cycle theory, this study comprehensively analyzes the current situation of the rapid increase in the proportion of urban water consumption in the total national water consumption in China, as well as the key problems in the inefficiency of the urban water circulation pathways. Taking into consideration the five stages of urban water circulation-abstraction, transmission, utilization, drainage, and return, the study systematically proposes that the protection and restoration of wetlands contribute to improving the urban water resource utilization, optimizing the spatial distribution of urban wetlands, and enhancing the synergistic effects of sustainable water resource utilization. By fully considering the overall optimization of urban ecological space and wetland layout, the study elaborates on how, under the guidance of urban land-use planning, enhancing social water return capacity and reducing the distance of social water return in urban water circulation can enhance efficiency. The regulatory role of wetland ecological engineering in optimizing urban water circulation is fully utilized. Finally, with consideration for the coordination and adaptability of medium and long-term urban planning and development, strategies for wetland protection and restoration to enhance water cycle efficiency are discussed. These strategies include the construction of multi-functional water sources land, shortening the drainage distance, multi-stage water purification, establishing small-scale wetlands, and constructing regenerative systems based on the concept of self-circulation. These specific measures provide an important basis for the overall layout of urban wetland resource space planning, and are of great significance for promoting sustainable urban water resource utilization and building resilient cities that achieve harmonious coexistence between humans and nature.