The invention discloses a water-cooling heat dissipation apparatus of a new energy electric vehicle and a heat dissipation method. The water-cooling heat dissipation apparatus comprises a condenser and a water pump; an evaporator is arranged at one end of the condenser while a liquid storage box is arranged at the other end of the condenser; a radiator is arranged above the liquid storage box; heat dissipation fins are arranged on the surface of the radiator; the water pump is arranged besides the radiator; a power supply plug is arranged on the outer side surface of the evaporator; a controlpanel is arranged on the outer side wall of the evaporator; a radiator is also arranged above the evaporator; a fixed rod is arranged on the radiator above the evaporator; a lifting handle is arrangedat the front end of the fixed rod; an anti-sliding sleeve is arranged on the lifting handle; and a heat exchanger is arranged on the outer side surface of the liquid storage box. The water-cooling heat dissipation apparatus has the beneficial effects of convenience in installation and capability of quickly completing heat dissipation and cooling of the electric vehicle storage battery, improvingheat dissipation efficiency and ensuring normal operation of the storage battery, thereby prolonging the service life of the electric vehicle.