Traditional urban construction methods often result in the inability of rainwater to penetrate and store effectively, increasing the risk of urban flooding disasters. At the same time, due to the rapid development of urbanization, the problem of water shortage has become increasingly prominent. The sponge city policy aims to transform the urban construction mode, make full use of natural resources and ecological means, realize the natural accumulation, infiltration and purification of rainwater, and improve the city's absorption, storage and release capacity of rainwater, so as to reduce urban flood disasters and alleviate the shortage of water resources. This paper takes China as an example to explore the construction of a sponge city from the perspective of sustainable development. This paper analyzes the current situation and existing problems of sponge cities development in China, and puts forward the development prospect of PPP model, in order to promote sponge cities construction and sustainable urban development.