This article contrasts the development of ancient Chinese cosmology with Zhuang Zi's cosmological notion of “taiyi sheng shui”. Initially, I would like to affirm Zhuang Zi's cosmos as a natural cosmos. From here we can show how Zhuang Zi introduces “qi” as an agent of change between heaven and earth. Zhuang Zi's notion of “taiyi sheng shui” equates “taiyi” with the Dao. Zhuang Zi's notion of the “taiyi as the builder of the eternal Being and Nonbeing” is essentially the same as the Dao. “Taiyi sheng shui” as regards to the illumination of the spirit, the Yin Yang, the four seasons, the cold, the heat, wetness, dryness and the passing of the ages is a nine-fold theory on the evolution of creation akin to (especially in the outer chapters of the Zhuang Zi) the notion of Yin Yang as the axis of creation. Especially worth noting in the notion of “taiyi sheng shui” is that water conceals many grounds of potentiality. It could be said to be a kind of unadorned naturalism. This is why I consider the “taiyi sheng shui” as an ontology of ancient myth, epistemology and philosophy. This notion is sort of scientific speculation for the ancients. Although Zhuang Zi's notion of “qi” serves as an explanatory model for his cosmology, and a bridge to the metaphysical world, it would be incorrect to draw any parallels from the incompleteness of “taiyi sheng shui”.