In order to clarify the fault distribution characteristics, the connection between the faults, and that the deposition whether is controlled by the fault system, a number of geological sections and the fault distribution map formed in different geological periods were drawn up. The study result shows that the Chaoshui Basin experienced four times of tectonic movement, and formed complex structural features in deferent tectonic movement. In Early-Middle Jurassic, it formed a series of EW strike normal faults, which control deposition in some degree. In Late Jurassic, it formed a series of EW strike abnormal faults, which have no effect on deposition. In Early Cretaceous, there only formed some smallsize of normal faults in Chenjiaxinjing sag, which have little effect on deposition. In Cenozoic, there formed a series of thrust faults, and some normal faults formed in Early-Middle Jurassic were reversed. The evolution of the basin includes the rift basin period of Early-Middle Jurassic, the depression period of the Late Jurassic, the uplifting and atrophy period from the end of the Late Jurassic to Cretaceous, and the transformation die period of the Himalayan tectonic movement in the Cenozoic. The source bed, reservoir and caprock in the basin developed well, so there are good conditions for forming structural traps in the Chaoshui Basin. It will be the next exploration work to looking for structural traps along the fault zone.