In 2013, the government of Zhejiang Province put forward a strategic project named “Five Water Cohabitation” (FWC) by integrating five water treatments: “sewage treatment,” “flood prevention,” “drainage system improvement,” “water supply guarantee,” and “water saving promotion.” It has been eight years since the project was proposed and launched. The primary purpose of the present study is to investigate the performance and significant effects of the project on the sustainable development of agriculture. This study investigates the project’s implementation from four aspects: environmental sustainability, resource sustainability, social sustainability, and economic sustainability. Furthermore, the difference-in-differences approach is applied to verify the treatment effect. Liaoning Province is chosen as the control group because it is also the traditionally agricultural province, and it has not implemented any large-scale water management projects. This study selects six sustainable variables, i.e., per capita GDP, urban-rural disparity, total water resources, domestic waste clearance, urbanization level, and health security level. The results show that the FWC project positively affects the sustainable development of agriculture for Zhejiang Province in economic sustainability, ecological sustainability, and social sustainability.