Abstract: The development characteristics of low accommodation delta sequences and their coal-forming characteristics and mechanisms have increasingly attracted attention. Previous studies have focused on the coal-forming characteristics and mechanisms from the perspective of accommodation changes, while there has been less research on the relationship between the development and evolution characteristics of shallow water deltas themselves and coal formation. This paper takes the Shanxi Formation of the Lower Permian in the Luxi area as an example to study the development and evolution characteristics of shallow water deltas and their impact on coal formation. Based on detailed outcrop and core logging of lithofacies and vertical sequences, distributary channels, tide-influenced distributary channels, interdistributary bays, peat swamps, and other delta plain environments, as well as delta front environments such as mouth bars and tide-influenced mouth bars, and prodelta environments, have been identified. By comparing single-well and multi-well sedimentary cycles and sedimentary relative analysis, the study area's shallow water delta depositional sequence is divided into five depositional cycles, C1-C5. The delta evolution shows a secondary cycle of progradation-retrogradation-progradation against a background of overall progradation. By integrating the analysis of delta depositional processes and coal-forming characteristics, it is proposed that the water dynamic zoning and delta evolution control the coal-forming action. The results indicate that under the background of low accommodation space and gentle terrain, the self-cycle action and hetero-cycle action of the delta jointly control the development and coal-forming action of the delta. The migration of delta distributary channels causes differences in water dynamic conditions, which control the coal-forming environment and coal seam development characteristics. In the river-dominated area, coal-forming action mainly develops in inter-channel swamps and interdistributary bays, where coal seams are relatively dispersed and limited. In the tide-dominated area, coal-forming action mainly develops in tide-influenced peat swamps, where coal seams have a wide distribution and large thickness; the transgression-regression cycle controls the overall distribution trend of coal seams, with a large amount of peat swamps formed during the regression period, where plants thrive, and coal seams are rapidly buried and formed during the transgression period. The above mechanism of coal formation in shallow water deltas may provide reference for the exploration of coalbed gas in the Upper Paleozoic of the North China region.