The Tahe Oilfield is a complex petroleum reservoir of Ordovician carbonate formation and made up of spatially overlapping fracture-cavity units. The oilfield is controlled by a cave system resulting from structure-karst cyclic sedimentation. Due to significant heterogeneity of the reservoir, the distribution of oil and water is complicated. Horizontally, a fresh water zone due to meteoric water can be found in the north part of the Akekule uplift. A marginal freshening zone caused by water released from mudstone compaction is found at the bottom of the southern slope. Located in a cross-formational flow discharge zone caused by centripetal and the centrifugal flows, the main part of the Tahe Oilfield, featuring high salinity and concentrations of Cl- and K++Na+, is favorable for accumulation of hydrocarbon. Three types of formation water in the Tahe Ordovician reservoir are identified: (1) residual water at the bottom of the cave after oil and gas displacement, (2) residual water in fractures/pores around the cave after oil and gas displacement, and (3) interlayer water below reservoirs. The cave system is the main reservoir space, which consists of the main cave, branch caves and depressions between caves. Taking Cave System S48 in the Ordovician reservoir as an example, the paper analyzes the fluid distribution and exploitation performance in the cave system. Owing to evaporation of groundwater during cross-formational flow, the central part of the main cave, where oil layers are thick and there is a high degree of displacement, is characterized by high salinity and Br- concentration. With high potential and a long stable production period, most wells in the central part of the main cave have a long water-free oil production period. Even after water breakthrough, the water content has a slow or stepwise increase and the hydrochemistral characteristics of the produced water in the central part of the main cave are uniform. From the center to the edge of the main cave, displacement and enrichment of oil/gas become weaker, residual water increases, and the salinity and concentration of Br- decrease. At the edge of the main cave, although the wells have a high deliverability at the beginning with a short stable production period and water-free production period. After water breakthrough, the pressure and deliverability drop quickly, and the water content rises quickly. The hydrochemistral characteristics of the produced water are relatively uniform. Wells in the branch caves have a relatively low deliverability at the beginning, with a short stable production period. Water breakthrough appears quickly and then the pressure and deliverability drop quickly. The salinity and concentrations of Cl- and K++Na+ are usually fluctuant or descend slowly in the produced water. Wells in low areas of ancient karst have a low deliverability and a short stable production period. The yield drops quickly and the water content is high, while the characteristics of the produced water may vary significantly well to well. The salinity and concentrations of Cl- and K++Na+ in the produced water are usually fluctuant with a precipitous decline.