According to the features of sequence boundary surfaces combined with drilling, logging, and seismic data. four 3rd sequences can be divided in the Palaeocene strata in Lishui Sag, East China Sea Shelf Basin, which are corresponded respectively to lacustrine Yueguifeng (SQⅢ1) and marine Lower Lingfeng (SQⅢ2), Upper Lingfeng (SQⅢ3) and Mingyuefeng (SQⅢ4). Integrated analysis and comparison of the sequence have shown that the development of Palaeocene sequence mainly depends on tectonic subsidence and framework, sea-level change and sediment supply which directly influence on the styles of sediment filling in this region while the development of sequence is weakly influenced by climatic condition.