With the increase in population growth,climate change and environmental degradation,the approach of Sustainable Integrated Urban Water Governance has become popular in global urban water management. Australia' s Water Sensitive Urban Governance is one of typical representative of the approach. The country' s urban water management has undergone six states of transition from 'water supply city' to 'water sensitive city'. Water Sensitive Urban Governance emphasizes holistic planning,adaptive management,interdisciplinary learning,diversified supply,public participation and risk sharing. These ideas can be integrated into three pillars of practice: Cities as water supply catchments,Cities providing ecosystem services,Cities comprising water sensitive communities. Australia's practice shows that it is easier to achieve the above two pillars in the short term,through the Water Sensitive Urban Design,regulation and financial investment. But thesocial-political support and institutional transformation of the third pillar is a long process. Australia's exploration of Water Sensitive City has a very important reference to China's sponge city construction.