The Permian of Daxiakou section at Xingshan County, Hubei Province is composed of the Qixia, Maokou, Wujiaping and Changxing Formations, with a thickness of 43372 m. The rock types of this section are rather simple. There are limestones, dolostones, siliceous rocks and shales. Limestones can be further divided into bioclastic limestones, bioclasticsbearing limestones, microcrystallinefine crystalline limestones and eyeball shaped limestones. The eyeball shaped limestones were mainly developed in the lower part of the Qixia Formation and the middle to lower parts of Maokou Formation. They were formed by the interaction of sedimentation and diagenesis. The dolostones are dominated by calcitic dolostones that are distributed in patches . They were mainly developed in the upper part of Changxing Formation, and probably formed by burial dolomitization. Siliceous rocks are of nodule, lump and bandlike types, which were formed by metasomatism. According to the comprehensive analyses of lithology, palaeontology and sedimentary structures, four kinds of sedimentary environments were identified.They include shore zone, carbonate platform, basin margin and basin, and locally there was bank in the platform. Then the sedimentary environment evolution has been analyzed and the sedimentary model has been built. The sedimentary evolution indicates that two sedimentary cycles of transgression and regression occurred in the Permian. The first transgression began in the Early Qiaxia Age, ended in the Late Maokou Age. In the Early Wujiaping Age, the second transgression began and lasted until the Late Changxing Age. The preliminary analyses show that the conditions of hydrocarbon source rocks and reservoir rocks of the Permian in the study area are rather favorable.