Abstract:Linyi city in Shandong province is licensed as "geothermal city in China". Geothermal resources in the area are abundant and the history of development and utilization is long, which produce significant economic and social benefits. By studying geological background and geological characteristics of geothermal resource in Feixian county in Linyi city, the formation and development mechanism of geothermal resources have been discussed. It has great significance in guiding effective development of geothermal resources in this region. In the south Shangye area, the strata of ordovician Majiagou group is directly exposed, and the atmospheric precipitation is directly or indirectly replenished the karst thermal storage aquifers. Shangyedongling fault with the trend of SN and its secondary fault communicate with Mengshan fault. Groundwater runs off through fracture structure, karst holes, cracks and other channels to the deep, and heated by the conduction of the terrestrial heat flow. Various chemical constituents of the surrounding rock dissolved in the process of formation and migration. The thermal conductivity of overlying strata is very low. Thus, it has a certain thermal insulation effect, and geothermal resources can be deposited and accumulated in the area. The deep karst geothermal reservoir type in this area is typically the layered and zonal geothermal reservoir controlled by fracture structure.