Abstract: To solve the problems of large water inflow, high proportion of sewage and low utilization rate of resource in the bordering area of Inner Mongolia and Shanxi, the idea of construction of groundwater regulation and storage system to stabilize the water inflow, purify sewage, reduce water treatment pressure and improve water utilization rate of mine is put forward. According to the conditions of coal seam burial and mining, the feasibility study on underground storage, purification and storage of mine water is carried out from construction conditions and location principles of the storage system, water capacity calculation, water quality guarantee, isolation engineering construction conditions, strong mine pressure impact analysis, safety guarantee, economic and environmental benefits. Based on the feasibility study, the demonstration project of mine water regulation and storage system is formed by using the construction of goaf in a coal mine in hugilt mining area, and good economic and environmental benefits have been obtained.