This paper aims to analyze the formation of residential area of the naval city Kure between 1890 and 1930. Spatial characteristics of them are clarified focusing on drought compensation caused by the construction for waterworks of The Naval Station and municipal water supply system. Irrigated agriculture had suffered shortages in irrigation water after the construction of the waterworks. Drought compensation among The Naval Station and land owners had influenced land use in irrigated area. Market of house for rent depending on land rent defined as Kokudai had changed agricultural land use into residential land development.
