As part of our efforts to identify effective ways and means to keep source water safe, the concept of risk assessment and management is introduced in this paper to address the issue of risk assessment and management of arsenic in source water in China. Carcinogenic and non-carcinogenic risk are calculated for different concentrations of arsenic in source water using the corrective equation between potential health risk and concentration of arsenic in source water with purification process taken into consideration. It is justified through analyses that risk assessment and management is suitable for China to control pollution of source water. The permissible content of arsenic in source water should be set at 0.01 mg/L at present in China, and necessary risk management measures include control contaminated sources and improvement of purification efficiency.