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The new Shanghai No. 1 Coal Mine is located in arid and semiarid area of northwest China, which is characterized by scarce rainfall, intense evaporation, and limited water resources. High-intensity coal mining has caused severe damage to groundwater resources. The Baotashan sandstone aquifer of the Jurassic system has abundant water resources, and they are stored in the floor strata of mining coal seams. This poses the risk of high-pressure build-up and water inrush hazards during the mining of coal. To avoid these, the Baotashan sandstone aquifer needs to be drained and depressurized, which can result in a huge waste of water resources. Thus, taking the New Shanghai No. 1 Coal Mine as the basis for the case study, the impact of coal mining on the underground water resources was quantified. Large-scale water release tests were performed under the shaft to determine the hydrogeological properties of the Baotashan sandstone aquifer and a three-dimensional numerical model of the groundwater system was established. The dynamic phenomenon of water drainage was simulated and the drained water discharge was predicted under the condition of safe mining. [ABSTRACT FROM AUTHOR]