The sludge produced by urban drinking water treatment plants has a high yield, low organic content, and a high risk of inorganic pollution. Its green and low-carbon treatment, as well as resource utilization, has become urgent issues in achieving the "dual-carbon" goals in China's water supply industry. This paper discusses and analyzes national industry policies and the characteristics of sludge from drinking water treatment plants, and summarizes the treatment methods and development trends in resource utilization. Currently, commonly used treatment methods for drinking water treatment plant sludge include water body discharge, municipal sewage discharge, and landfilling, which present environmental risks, facility clogging, land occupation, and significant carbon emissions. Based on the characteristics of sludge from urban drinking water treatment plants, potential methods for resource utilization include the production of synthetic adsorption materials, coagulation/precipitation materials, regenerated salt materials, construction materials, and agroforestry materials. Breaking through the aforementioned key technologies to realize the transformation of drinking water treatment plant sludge from "treatment" to "resource utilization" will play a crucial role in promoting the green and low-carbon operation of China's urban water supply industry.