This paper measured province-level water resource efficiencies in China from both static and dynamic perspectives, applying the undesirable-output-based Malmquist-Luenberger productivity index to panel data of 30 provinces in China from 2006 to 2015. Then, the paper analyzed factors that affect water resource efficiency by using a panel Tobit model. Research results showed significant lack of water resource efficiency with notable differences among provinces; water resource efficiency was somehow related to the level of economic development. Technical improvement was an important factor in water resource efficiency. The level of economic development had a non-linear influence on water resource efficiency. Industrial structure upgrading and population expansion could significantly improve water resource efficiency while the effects of water supply and per capita educational level were insignificant.