Abstract: Based on the conditions of geothermal geology and Donaldson tubular model, the authors propose a conceptual model of thermal reservoir structure for the Xining basin. This model addresses the following: terrestrial heat flow is the heat source, rocks with a low thermal conductivity stores heat, the mechanism is gradual heating by deep circulation and compelled convection, and the water and heat are controlled by structure. Although geothermal anomalies are widespread in the basin, geothermal resources are not present anywhere. It is necessary to determine accurately the best structural sites for drilling geothermal wells and find thermal reservoirs with a high permeability.