The reservoir in the Daqing Peripheral Oilfield is characterized not only by thin thickness, small sand scale, and ultralow permeability, but also by strong vertical heterogeneity. Interlayer interference is a serous problem in waterflooding exploitation. It is absolutely necessary to recognize the effect of vertical heterogeneity on reservoir development before interlayer interference being solved. Based on the geological characteristics of actual data, a five-point well geological model which is vertical heterogeneity and positive rhythm for the numerical simulation is established. Considering the non-linear seepage law and pressure sensitivity features in special-low permeability reservoir, the seepage law of different cycle water injection is studied. The results show that with the same water ratio, the recovery degree of augmented-abated injection mode is higher than that of augmented-suspended mode. The injection profile of augmented-abated mode is more uniform than that of augmented-suspended mode, the water absorption ability of relatively low permeability reservoir is strengthened, and the water absorption capability of relatively high permeability reservoir is weakened. The pressure gradient of injection well near bottom is generally higher than 0.2MPa/m in the increasing part of augmented-suspended water injection mode; water injection energy is expended in an establishing water flow path. The distributions could provide the intuitive judgment on the affect of cycle water injection on the vertical heterogeneity development.