Urban waterlogging and urban water environment problems in Changde city caused by extreme weather have seriously hindered the sustainable development of cities. A sponge city not only involves the inheritance and development of foreign technology but also a new method for its use. The background of sponge city construction based on green infrastructures in China was introduced in this study. As one of the first pilot construction cities based on the sponge concept, Changde city possesses natural geographical advantages. The current urban situation, rainfall type and water environment in the sponge construction area were analyzed and the causes of urban waterlogging and deterioration of urban inland river water quality are presented. Based on the urban water environment and ecological status, the specific strategic objectives of the sponge city transformation are given. Meanwhile, the overall technical route and the concrete realization path of each index, such as the water environmental system, water ecological system and security system, are also presented. The annual net flow total control rate and the runoff pollution reduction reached 77.56% and 45.18%, respectively. The total runoff and peak flow were also reduced by 35.08% and 26.82%, respectively. Meanwhile, the peak flow of runoff pollution concentration was reduced by 31.99%. The pollutant load reduction rate of non-point source pollution in the area reached more than 45%. The project not only alleviated the problems of urban waterlogging and black and odorous water bodies but also ensured the sustainable development of the urban water environment.