Shui Dao Town, belonging to Muping District, Yantai City, Shandong Province, is located in the southern part of Muping District, east of Yulindian Town, south of Lushan City, connected to the town of Shimachu and Wuji, west of Wanggezhuang Town, northwest of Gaoling Town as a neighbor, and north of Yulindian Town, with an area of 193.5 square kilometers of administrative area. As of the end of 2019, Waterway Town has a household population of 29,706.
During the Ming and Qing dynasties, it belonged to Taxmu She and Shuangshan She of Kunbein Township, Ninghai Prefecture, and Renxin She of Chengyin Township; in March 1984, the commune was abolished to set up ShuiDao Township and LiuJiakuang Township; in 2001, LiuJiakuang Township was merged into ShuiDao Township. As of June 2020, Shui Dao Town has 56 administrative villages under its jurisdiction, and the town people's government is located in Shui Dao Village.
In 2019, Shui Dao Town has 67 industrial enterprises, including 8 above scale, and 7 comprehensive stores or supermarkets with business area over 50 square meters.