The vulnerability analysis method has been widely used in many environmental fields. In recent years, the tool has succeeded in comprehensive assessment of environmental problems. This study applied the vulnerability and resilience analysis method on watershed conservation and grasped the environmental change capacity that watershed could bear. The Fei-tsui reservoir watershed in Northern Taiwan provided the setting for the case study reported herein. This study considered both internal and external effect factors, including watershed vulnerability, rainfall energy and the distances between the outlet and subbasins, and developed a new index, WP, for the priority restraints strategies on the land-use activities. The land-use restraint index can be a significant criterion for watershed protection and management strategies.