In order to supply optimum water to restore reed wetlands used for bird habitats, a field investigation and greenhouse experiment were conducted. Three water supplementation stages (early stage at 20 May, middle stage at 20 July and later stage at 20 September, respectively) and five depths (0, 10, 15, 20 and 35 cm over the surface, respectively) were established, with three replicates for each treatment combination. Reed growth characteristics (survival rate, height, density and biomass) and soil properties of field investigation and experiment were recorded to determine the impacts of water supplementation on reed wetland restoration. The field investigation showed that reeds in natural wetlands grow better than those in degraded wetlands and soil properties in degraded wetlands were significantly different from soils in natural wetlands. With freshwater supplementation, reed growth characteristics and soil properties greatly improved. As water depth increased, reed growth decreased gradually. Reeds grew best in shallow water depth (≦10cm) than in the greater flooding depths. Saturated soils with no standing water at the early stage of reed growth increased reed survival and water depth can be increased as the reeds grow. During the process of water supplementation, soil salinity was reduced significantly. Soil salinity was reduced dramatically at early and middle stages of reed growth, but it increased slightly at the later stage. Soil pH increased greatly during the experiment. Soil total nitrogen (TN) and total organic carbon (TOC) showed contrasting changes, with soil TN decreasing and TOC increasing. To best manage reed wetlands restoration, we suggest saturating wetland in the spring to stimulate reed germination, increasing surface water depth up to 15cm at the stage of reed rapid growth, and then reducing water depth during the later growth stage.