With the development of the economy, urban renewal has become an inevitable task for China to achieve people's comfortable lives and beautiful aspirations. The quality of water environment in urban renewal determines the level of renovation and livability of the city. In the process of urban renewal, water ecological restoration technology mainly includes biofilters, bioremediation, artificial wetlands, ecological floating island technology and so on. This article takes the Changzhou Laochengxiang urban renewal project as an example to analyse the advanced functions and development trends of water ecological restoration technology application in the context of urban renewal. It discusses the current application status of water ecological restoration technology in China and its significant technological advantages for urban renewal work and contributions to livable city construction. It compares parallel technologies from multiple aspects, such as cost, environmental benefits, and cultural feelings, exploring the advanced functions and development trends of water ecological restoration technology, technology and providing reference and inspiration for the construction of similar projects in China.