Abstract: With the rapid development of urbanization, the traditional urban construction mode has greatly increased the area of ground hardening and destroyed the original natural heritage of the city. With climate change, rainstorm and other factors superimposed, the flooding street phenomenon has become increasingly prominent. Sponge city, as a development mode for improving the function of urban ecosystem and reducing the occurrence of flood and waterlogging disasters, is an important path to deal with urban water problems as well as an important part of urban ecological civilization, belonging to the category of quasi-public goods. As a formal institutional arrangement in the field of public goods and services, the PPP mode is married with the sponge city, which not only meets the theoretical requirements of public goods but also embodies the concept of cooperative governance. Since 2015, China has explored the construction of sponge city in the PPP mode and has achieved initial success, but there are still some obstacles. In the future, we can promote the application of PPP mode to the sponge city field by improving relevant legal system, optimizing implementation mechanism, updating governance means and improving dispute resolution methods, so as to accelerate the construction of sponge city and prevent and alleviate urban waterlogging and other water environment issues and improve public welfare.