In order to understand the origin and flow of formation water and to evaluate the hydrocarbon accumulation and preservation conditions, the properties of formation water chemistry and dynamics of the Zhenwu area in the southern Gaoyou Sag, North Jiangsu Basin, China, have been investigated. The results show that Xuzhuang oilfield is infiltrated discontinuously by meteoric water under gravity, which consequently leads to the desalination of formation water. Formation water in the Zhenwu and Caozhuang oilfields is less influenced by meteoric water infiltration, and the origin is interpreted to be connate water. Hydrocarbon migration, accumulation and preservation are closely related to the hydrodynamic field of formation water. Formation water concentrates gradually during the process of centrifugal flow released by mudstone compaction and the centripetal flow of meteoric water infiltration, leading to the high salinity of the central part. The geological conditions of the southern fault-terrace belt are poor for hydrocarbon accumulation and preservation as meteoric water infiltration, leaching and oxidation, while the central part, i.e., northern Zhenwu and Caozhuang oilfields is beneficial for an abundance of hydrocarbon accumulation. Most of the large scale oil-gas fields locate herein.