In view of the backward situation in technology of the prepayment intelligent water-meter. The paper presents the new method of water-meter word wheel’s numeral recognition and the design of intelligent water-meter based on TM card and its management system. TM-card technology is introduced into prepayment intelligent water-meter, the structure of hardware and realization of software in the control system of Intelligent TM-card water-meter is given, including introducing the method of encoding sampling and recognition, and the circuit design of every part, and the design of embedded software. The realization of charge management system is detailed introduced. The prototypical experiment and the actual application indicates that the intelligent water-meter system based on TM card has some advantage of perfect function, exact measurement and reliable communication.