Abstract: The Liuwushe Subsag, located in the east of Gaoyou Sag, North Jiangsu Basin, is a Cenozoic continental faulted basin formed at the end of Late Cretaceous. The present structural pattern of the first member of Dainan Formation is dustpan shaped, with slope zone in the north, steep slope zone in the south and deep sag in the middle. However, the restoration of the burial history indicated that the paleotopography of Liuwushe Subsag was limited when the first member of Dainan Formation was deposited. The depocenter during that period was located east of the present deep sag with a much smaller range. Provenance analyses indicated that most sand bodies of the first member of Dainan Formation in the Liuwushe Subsag came from the northern slope zone rather than the southern steep slope zone. Core observation and seismic and logging data indicated that a great many underwater channel sand bodies extended from north to south in the study area. Shallow-water delta deposits also developed in a faulted basin when the activity intensity of the basin boundary fault was weak. Well logging and seismic data were used to predict the spatial distribution of sandstone or pebbly sandstone.A large number of gravity flow deposits associated with the boundary fault remobilization occurred in the steep slope zone, which was identified as one difference between the shallow-water delta system of the fault basin and that of the depression basin.