The availability of in situ measurements of precipitation in remote locations, especially in mountainous regions of northwest of China, is limited. The ground-based hydrometeorological observations are frequently sparse in remote mountainous regions and the situation is not improving. While hydrological models have the potential to provide the necessary information, without adequately accurate climate (rainfall, evaporation, etc.) input information, it is extremely difficult to establish models and generate representative water resource availability information. As a result, the use of satellite measurements of precipitation is attractive for water resources management. However, these products have several weaknesses, for example their failure to capture certain types of precipitation, limited accuracy and limited spatial and temporal resolution. This paper evaluates the usefulness of TRMM 3B43 precipitation products over data scarce of complex mountainous terrain in northwest China from a water resources perspective. It is clear that the satellite data cannot be used directly in conjunction with historical gauge data. Specifically, the satellite data do not reflect the strong influences on precipitation of topography in some of the basins. However, the prospects of applying relatively straightforward adjustments are promising and further assessments appear to be justified.