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The recent increase in rainstorm waterlogging disasters has acutely threatened sustainable urban development in China. Traditional strategy to solve this problem is drainage capacity enhancing projects, which aims at enlarging the discharge of water. Recently, there is a new countermeasure emerged in Chinese cities: ‘Sponge City’, which aims at enlarging the absorption of water by increasing the curves of urban land. This article endeavours to make a comparison between these two countermeasures by building a framework to design and analyze the private or social costs of two projects which have the same rainwater control capacity. Finally, we have come to the conclusion that only considering initial cost, Sponge City unit cost is much more than drainage capacity enhancing project unit cost; considering external cost, Sponge City is not only competitive from an economical perspective, from an environmental perspective Sponge City is also competitive.
