The urban flooding situations have arisen in the modern scenario of urbanization due to climatic changes. This work contributes to designing a planned and feasible urban rain flood ecosystem to promote the construction of a sponge city. It has various advantages of improving the water environment, controlling urban waterlogging, reducing runoff pollution, improving river and lake water quality, recycling rainwater resources, replenishing groundwater, and many more. This paper combines the design methods and advantages of the design results formed in decades using traditional regulation and utilizing it for the present study. It reconstructs and integrates the traditional regulation and sponge city construction requirements, thereby providing a feasible urban rain-flood ecosystem in the industrial and smart city scenario. Finally, the regulation of new paddy areas in Yanjin city of China is considered for experimentation, and the design of the regulation is applied using this setup. The design results obtained from the test of sponge city construction have operability and can improve the urban environment and enhance the vitality of the city. The control plan’s design results integrating the sponge city idea can provide effective technical support and guarantee the overall urban environment. The work presented in this article can assess and plan the flood mitigation measures to monitor this type of situation leading to flooding risk reduction in smart cities.