The sequence stratigraphy studies of the third member of the Shahejie Formation(SHA-3) in the western of Huimin basin, Shandong province indicates that it is more suitable to divide a sequence into four systems tracts in the lacustrine basin including low stand systems tract(LST), lake-transgressive systems tract(TST), high stand systems tract(HST) and falling-stage systems tract(FSST), according to the characteristics of the lake level change and its corresponding sediments. The sequence boundary is located between LST and FSST. There are four key surfaces in a sequence: first flooding surface, maximal flooding surface, first falling surface and maximal falling surface. The first flooding surface is located between LST and TST, and is corresponded to the sedimentary boundary while the lake water change from the relatively stable stage to the quickly rising stage. The maximal flooding surface is located between TST and HST, and condensation section (CS) usually forms near the surface. The first falling surface is located between HST and FSST, and is corresponded to the sediment boundary while the lake level begins quickly falling. The maximal falling surface is also the sequence boundary, and is corresponded to the sediment boundary while the lake level falls quickly to the lowest location. This paper has summed up the identical marks on the cores, well loggings, seismic data and so on. SHA-3 member of the central uplift belt can be divided into six systems tracts and three sequences. The distribution characteristics of different systems tract are discussed in Sequence II. During LST the area of lake water is small, and the river-delta deposition system develops, and the river is usually very long, and invised valleys also develop at the margin region of the lake basin. TST develops some small regressive deltas, and sandbodies is less. During HST the area of lake water is large, the main sandbody is some deep-water turbidity sands. FSST develops abundant transgressive deltas. So sandbody develops well during FSST and LST, and oil rocks form most during TST and HST.