Chinahasexperiencedarapidurbanizationsincelate1970s.Thegreatincreaseofurbanpopulationhasresultedinvariousenvironmentalchanges,ofwhichurbanwatershortageandwaterenvironmentproblemshaveoc-curredinmostcities,especiallyintherapidlydevelopingurbanagglomerationsintheeasterncoastalregion.Thisresearch,takingShandongPeninsulaUrbanAgglomeration(SPUA)asacasestudyarea,analyzestheurbanizationexpansioninthelastdecades,discussesthewatershortageandwaterenvironmentchangesfollowingtherapideco-nomicdevelopmentandurbanizationsuchasgroundwatersinkingintheurbanandplainarea,seawaterandsalt-waterintrusioninthecoastalcities,waterpollutionoverspreadingandwaterecosystemdegradation,andputsfor-wardssomestrategiesforsustainabilityinpopulousregionswithseverewatershortage.SomecountermeasuresforsustainabledevelopmentofSPUAareputforward,suchasconstructingmodernwaterresourcesinter-citynetworkstoregulatewaterresourcebetweencities,adjustingurbanizationpolicyandurbanscaleplanningtopromotethede-velopmentofsmalltownsandmediumsizedcities,optimizingurbanindustrystructurebyrestrictinghighwatercon-sumptionenterprisesandstimulatingthegrowthoftertiaryindustry,improvingwateruseefficiencytoreducefreshwaterconsumptionandwastewaterdischarge,introducingeconomicmeanstowaterpricingandwatermanagementsystem,andrestoringecologicalconditionstostrengthenthenaturalwater-makingcapacity.