A campaign called "sponge city" will see the construction of high-level urban sewer systems during renovation work and new roads, residences, industrial parks and public green areas, a statement released by the central cabinet here said.
The sewer system will drain rain water quickly and guide it to collection facilities for recycling.
The government encourages private investors to participate in the construction of the new sewer systems and asks financial institutions to provide support.
In one case, 79 people died in Beijing after a rainstorm on July 21, 2012.
Heavy rains and occasional thunderstorms are common in China.