The laser diode (LD) two-sides-pumped transverse flow Nd3+∶POCl3∶ZrCl4 solution is adopted to eliminate the thermal effects in an inorganic liquid laser system. The theoretical model for a liquid laser is established, the influence of working parameters on the energy conversion efficiency and medium thermal effect is analyzed, and the energy conversion efficiency, the far field intensity and the laser beam luminance distributions at different absorbing coefficient and different velocity of flow are simulated. The simulation shows that the energy-conversion efficiency is very high and the light beam quality is excellent with a laser diode pump source. The output power and laser beam quality match best and the laser beam luminance reaches a peak value when the absorbing coefficient is about 2.5～3.0 cm-1, the velocity of flow is about 25 m/s and the unilateral pump intensity is 800 W/cm2 at a determined pumping volume.