The invention discloses a brown coal drying power generating system capable of recycling water in coal and an implementation method of the brown coal drying power generating system. The brown coal drying power generating system comprises a boiler, a steam turbine, a water feed pump, a condenser, a coal mil, a brown coal drying device, a device for recycling the water in the coal, a raw coal bunker, a low-pressure heater, a deaerator, a high-pressure heater, a condensate pump and a steam-water mixer. The brown coal drying device is connected with the device for recycling the water in the coal, the raw coal bunker, the low-pressure heater, the deaerator, the high-pressure heater, the condensate pump, the steam-water mixer, the boiler, the steam turbine, the water feed pump, the condenser and the coal mill. Operation of a large-capacity brown coal power generating set is achieved by integral design of the brown coal drying device and the boiler and combination of the device for recycling the water in the coal and the steam turbine.