The water resources and water environment are closely related to the development of green economy, regional environmental protection, ecological restoration and people's health in China. At present, the local governments of Jiangsu Province are actively promoting water environment governance and protection and also facing the problems such as technical barriers, financial constraints and poor management. The current situation and problems of water environmental governance in the southern areas of Jiangsu Province are analyzed. It is put forward that the multi-participation water environment protection fund is one of the important ways for promoting the green development and transformation of local economy through system design, resource integration and regional collaborative governance.