It is very difficult to develop the low permeability reservoir. Nowadays it faces serious challenging because of the decline of oil price. In the paper, based on a great amount of investigation, the main problems in developing low permeability reservoir with water flooding are pointed out and the main causes to form these problems are analyzed. According to the theoretical study and practical experiences, the main ways to develop the low permeability reservoir efficiently and economically are given. It is to raise the oil production, recovery rate and recovery factor on the basis of scientific and rational development plan on the one hand; to improve the process technology and reduce the investment and cost on the other hand. As a result, the better development results and economic benefit can be obtained in developing low permeability reservoirs.

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