Abstract: Jin66 well block in Dongsheng gas field belongs to a lithology-structural reservoir with low porosity, low permeability and low abundance. Water production of some wells is large, which restricts the further improvement of productivity. The gas-water distribution regularity and controlling factors of target formation He-2 member are unclear, and the gas-water distribution is complex. Based on the drilling data and testing data of gas field, the electrical standard for gas-water identification was established. Through standardized gas-water identification and existing reservoir-forming understandings in the whole region, it is considered that the gas-water layers are non-regional continuous distribution, the gas-water interface is not uniform, the structure is high, the physical properties are good and the gas layers are relatively developed, which is a typical lithologic structural gas reservoir. The analysis shows that the water production mainly comes from the water in He-2 member, and the formation water in this area can be divided into isolated lens water layer, gas-water mixed layer with edge bottom water and weak differentiation. The gas-water distribution is controlled by structural characteristics, high-quality reservoir distribution, reservoir heterogeneity and reservoir formation, and then the corresponding geological development strategies were put forward.