The Lower Permian carbonate deposits of the Chihsia Formation located in Chaohu, Lower Yan- gtze are studied in this paper, with emphasis on the relationship between paleoproduetivity, redox condi- tions and the formation of source rock, upon the basis of element geochemistry. The results demonstrate that Ba and TN have evident relations with biological deposition and can be used as a geochemical proxy for paleoproductivity. V/(V2c-Ni)ratio, as a geochemical proxy to reconstruct the paleoredox, indicates that the Chihsia Formation was formed in an oxygen-deficient environment. The above mentioned proxies sug- gest that paleoproductivity and paleoredox have close relation with sea level fluctuation. The effective matching of algae productivity and preservation condition made the region favorable for source rock forma- tion while the Chihsia Formation was deposited. High quality source rocks mainly occur in the lower part of the Middle Limestone Member of the Formation.