Abstract: Jiegu township of Yushu county lies in Zhaxike geothermal anomaly area along the Yushu fault zone. Geothermal formation conditions are controlled by the Yushu Fault. The Yushu Fault is of poly stage activity, and acts as water conduits and is a high geothermic gradient belt. The hanging wall of the faults forms an upwelling pathway and groundwaterrich area, in which geothermal anomaly area is characterized by obviously zonal distribution. Hydrogeologically, the hangning wall is respectively rich in groundwater. The groundwater is recharged from precipitation, surface water and groundwater runoff in the northeastern hilly area. Groundwater, converging in crushed zone of the fault, is heated in the patheway and becomes circulating runoffs through structural fracture and karst fracture etc. And at last, discharges in the forms of hypgene sping of high or abnormal temperature in the valley and intermontane basin. The preevaluation test shows that the geothermal source in the Gujie area is of great potential capacity and development prospect