The invention discloses an irrigation water management system based on farmland water monitoring, and a management method implemented by the system. The system comprises a soil water and soil temperature information module, a farmland irrigation and soil water content information module, an irrigation area water consumption and irrigation result measuring and reporting module, and an irrigation area irrigation benefit result reporting module. The system and the method provided by the invention have the advantages that through comprehensive and modular technical methods and solutions, the maximum application of limited information is achieved; an information source, data transmission, a server and a database are utilized to provide basic conditions for storage, extraction, utilization and processing of monitoring information demand responses by the management system; and through comprehensive technical analysis methods, such as water balance, logical association, mathematical statistics, the method of measuring soil water contents at the beginning and the end of a period, the head-tail ratio calculation method, cross-industry data application, the water equivalent calculation method and the like, analysis of a water consumption quota, an irrigation system, the soil water content, the amount of water required by crops, an irrigation water utilization coefficient, the amount of water introduced into an irrigation area, crop yields, irrigation benefits and other management technology evaluation indicators can be achieved.