Abstract: Taking Rose Community in Guyuan City as an example, the ideas and project contents of the sponge transformation were put forward according to the community characteristics such as large green space area and less difficulty in the renovation of broken rain-falling pipes, and the economic and ecological benefits after the sponge transformation were calculated. The results showed that, by means of the sponge transformation, which was to reconstruct the drainage system and construct the sinking green land, grass ditch, rainwater garden, rainwater tank, reservoir and permeable pavement, etc., the comprehensive rainfall runoff coefficient could be reduced by 0.21 and the runoff reduced by 5 137.85 m ³∕a in the residential area, thus resulting in good effect of rainwater regulation and storage. The sponge transformation had certain economic benefits, which could save the urban drainage facilities cost of 411.03 yuan∕a, the tap water cost of 4 159.20 yuan∕a, and the water-saving benefit of 28 155.42 yuan∕a. After the sponge transformation, it could absorb 8.18 t∕a of carbon, release 6.31 t∕a of oxygen and absorb 50.73 kg∕a of sulfur dioxide, resulting in significant ecological and environmental benefits.