The Pinghu Formation is one of the major source rocks for oil and gas reservoirs in Xihu depression. The types of source rocks are mudstone, carbonaceous mudstone and coal, the organic matter type is Ⅱ-Ⅲ, the organic matter is abundant, and on the whole, the rocks are medium-good source rocks. The Pinghu Formation of Xihu Basin is mainly developed in bay, delta influenced by tide, braided river delta and tidal flat, with source rocks deposited in the bay and tidal flat environment. On the basis of the study of the controlling factors and sedimentary environment responsible for developing source rocks of Pinghu Formation, the authors have established a sedimentary model for developing source rocks in Pinghu Formation