The invention discloses a remote meter reading and settlement method and system of a water meter. The method comprises the following steps: S1, recording water use data and consumption records of a user by the water meter, and uploading the water use data and the consumption records to a background management platform; S2, carrying out connection and communication with the background management platform by a mobile phone, receiving the water use data and the consumption records, and carrying out water fee recharging; and S3, sending water fee recharging information to the water meter by the background management platform, updating water fee recharging information by the water meter, and carrying out automatic settlement and fee deduction. The system includes the water meter, the backgroundmanagement platform and the mobile phone. According to the method and the system, data intercommunication is realized through connection and communication of the mobile phone, the water meter and thebackground management platform, the user can obtain water fee information in real time, and carry out water fee recharging in time, water fee recharging of the user no longer needs operations of a special person on local management software, recharging is no longer limited by time and geographical locations, the user and an administrator are greatly benefited, and cases of non-malicious water cutting and fee arrearage are greatly reduced.