Water is not only the origin of life, but also irreplaceable natural and strategic resource for sustainable development of human society and it is indispensable part of comprehensive national strength. The sustainable utilized water resource and the beneficial cycle of it are crucial factors that influence the regional economic development and the civilization of society. In Peninsula Shandong, groundwater is the fundamental resource that supports economic development. With the fast development of economy, the phenomenon of water shortage and water environmental deterioration is more and more serious. Therefore, constructing groundwater reservoir is an important approach to solve contradictions, to optimize collocation of water resource and to actualize sustainable development. Through the achievements of groundwater reservoir construction in Peninsula Shandong, this paper expatiates on the type and technological measures of groundwater reservoir. Moreover, it discusses the beneficial effect of constructing groundwater reservoir in this area and points out that with the help of groundwater reservoir we can fasten our steps to regional sustainable development. This paper thus provides scientific basis for harmonious development of economy, society, resource and environment in this area.