This paper analyzed the reason for the rise of water level in Pingliang Railway district. We calibrated the measurement system, lightning grounding resistance of power supply system, electric source voltage and on-site water level. We also investigated and compared the data of rain-fall and water level at the observation site, the water level data at other observation sites around the district, water temperatures of different depth in the well, the groundwater exploitation amount of Pingliang Huaneng power plant and the environment around the area. We have found that the rise of water level is caused by the decrease of groundwater exploitation of the 13 water wells owned by Huaneng power plant which is distributed over Pingliang area. It is unlikely to be the precursor of earthquake.