Based on a detailed study of the geologic setting for the formation of thermal mineral water, the systematic theory is used in the paper to analyse the features of distribution and geochemistry of thermal mineral water. It is proposed that thermal mineral water in Shanxi province is derived by percolation of meteoric water and that the formation of various trace elements and major components is closjly related to the interaction between groundwater and country rocks. They are formed mainly through leaching.Geothermal energy comes from the deep levels of the earth. The thermal regime at the shallow levels the earth's crust is mainly controlled by deep structures. The heterogeneity of the thermal regime in the shallow and moderately deep parts of the shallow basin is related to the shallow structure, thermal conductivity of rocks and hydrogeological conditions. Subsurface runoff may lead to redistribution of shallow thermal energy. Thus two models of formation of thermal mineral water in Shanxi may be distinguished; the abnormal temperature-increase model and the normal temperature-increase model. The former has three typical structures, whose heat sources, heat-transfer systems, water sources and water-delivery systems have common features, the only difference lying in geologic structure.Thus the rises in new aulacogen and their marginal zones and piedmont fault zones are the major areas for looking for thermal mineral water. As for natural drinking mineral water beside the structural factor, the stratigraphical factor is also an important marker for looking for it. The main target for the exploitation of thermal mineral water should be the basin.