This study comprehensively evaluates the impact of shale gas exploration and exploitation on water utilisation from the perspective of geological heterogeneity in China. Using a process-based life cycle inventory (LCI) model, we quantitatively analyse the water environment in three major shale gas regions in China (Changning-Weiyuan, Fuling and Yanchang areas). The results show that the water consumption amount during shale gas extraction in Changning-Weiyuan area is 21,594.26 m3, which is smaller than 28,105.94 m3 in Fuling area. And that in Yanchang area, approximately 25,000 m3, is estimated between the above two areas. The water shortage under the impact of shale gas extraction is then further measured by the water supply and demand index. Comparison reveals that Changning-Weiyuan region contains the most abundant water resources, and Yanchang is confronted with water scarcity during shale gas development. These conclusions provide a reference for the sustainable development of shale gas projects in China. [Received: March 28, 2020; Accepted: January 20, 2021]