As one of the unconventional natural gas family members, coalbed methane (CBM) receives great attention throughout the world. The major associated problem of CBM production is the management of produced water. In the USA, Canada, and Australia, much research has been done on the effects and management of coalbed methane produced water (CMPW). However, in China, the environmental effects of CMPW were overlooked. The quantity and the quality of CMPW both vary enormously between coal basins or stratigraphic units in China. The unit produced water volume of CBM wells in China ranges from 10 to 271,280 L/well/day, and the concentration of total dissolved solids (TDS) ranges from 691 to 93,898 mg/L. Most pH values of CMPW are more than 7.0, showing the alkaline feature, and the Na-HCO3 and Na-HCO3-Cl are typical types of CMPW in China. Treatment and utilization of CMPW in China lag far behind the USA and Australia, and CMPW is mainly managed by surface impoundments and evaporation. Currently, the core environmental issues associated with CMPW in China are that the potential environmental problems of CMPW have not been given enough attention, and relevant regulations as well as environmental impact assessment (EIA) guidelines for CMPW are still lacking. Other potential issues in China includes (1) water quality monitoring issues for CMPW with special components in special areas, (2) groundwater level decline issues associated with the dewatering process, and (3) potential environmental issues of groundwater pollution associated with hydraulic fracturing.