Heat transfer from paved road surfaces within the city contributes to create "urban heat islands", leading to increased energy cost, discomfort environment for human beings, and increased smog formation. Therefore, this study focused on the development of a block pavement system with water-retention and pollution control to improve the heat and water cycle in urban area. The block pavement system was designed to store water in a storage space for further evaporation and infiltration. Additional water was supplied to the block using capillary phenomenon. A wood filter layer was applied to remove pollutants in road runoff. The permeability, absorptiveness, and the efficiency of temperature reduction of the block pavement system was investigated and compared with existing block system. Experimental results indicated that absorptiveness ability was about twice and the continuous efficiency of temperature decline was excellent than those of existing block system.