The current situations of pollution and treatment investment of water environment during urbanization in China are analyzed, and it is concluded that the PPP mode has a positive effect on filling the fund gap and promoting the social investment during green urbanization. The new development and specific application of PPP mode in the treatment investment of water environment are summarized. Several problems in the implementation of PPP investment projects of water environmental treatment are pointed out: different governance levels in various areas, low participation degree of environmental protection enterprises, imperfect investment return mechanism and insufficient legal system. Finally, some suggestions are proposed as follows: (1)The government should regulate the procurement standards for PPP projects of water environment protection and set up a specialized PPP management center; (2)The entering level for private investors should be properly set and the project transaction system should be scientifically established; (3)Dynamic pricing transaction system and government subsidy mechanism should be established; (4)The legal system of PPP mode should be improved.