The raise-refund mechanism of water price policy is a kind of innovation mode of agricultural water price system in the comprehensive management of groundwater overdraft areas in Hebei Province. It is beneficial to further popularize the mode by studying its connotation and the existing problems. Referring to the existing literatures and based on the interview with water conservancy departments, village cadres and farmers, an in-depth analysis of the connotation of the price mode is discussed. The advance and the preliminary results of the pilot work of the raise-refund mechanism of water price policy in the groundwater overdraft areas in Hebei Province are summarized, and the dilemma in the promotion of the price mode is analyzed. On this basis, some feasible countermeasures and suggestions are proposed for further implementation of the raise-refund mechanism of water price policy in the groundwater overdraft areas.