Abstract This paper analyzes the engineering characteristics of loess and the factors affecting wet subsidence, briefly outlines the application effect of PP modular cisterns, and combines the two to design a PP modular cistern based on rainwater harvesting. Combined with the analysis of the pre-engineering conditions of the storage tank, propose the treatment method for wet subsidence loess foundations. Design the structure of the storage tank by determining the volume of the tank by comparing the difference between the inlet and outlet flow during the storage time integral. Simulate the modeling of storm floods and the process of emptying stormwater regulating ponds. Evaluate the geologic conditions for the construction of the regulating pond project. Compare the original investigation report with the results of this paper’s test of the engineering foundation’s wet subsidence coefficient. Set different thicknesses of bedding layers and calculate the settlement of the center of the pool under different humidity levels of the loess layer. Simulate the 2.3-hour rainstorm process, analyze the storage volume of the storage pond during the period, and calculate the cumulative storage volume of the storage pond. This project’s foundation loess wet subsidence coefficient is medium, and the actual additional pressure is much smaller than the starting pressure of wet subsidence. It is appropriate to use the soil bedding program (1.6m plain soil bedding layer and then rammed 0.4m thick 2:8 gray soil, with PP module seepage control). Combined with the local hydrological conditions, it is known that the peak present time of the peak outflow from the regulating pond T P =85min, and the volume of the regulating pond is 22543.47 m 3.