This article outlines the development of separated zone oil production in foreign countries, and details its development in China. According to the development process, production needs, technical characteristics and adaptability of oilfields in China, the development of separate zone oil production technology is divided into four stages: flowing well zonal oil production, mechanical recovery and water blocking, hydraulically adjustable zonal oil production, and intelligent zonal production. The principles, construction processes, adaptability, advantages and disadvantages of the technology are introduced in detail. Based on the actual production situation of the oilfields in China at present, three development directions of the technology are proposed. First, the real-time monitoring and adjustment level of separated zone oil production needs to be improved by developing downhole sensor technology and two-way communication technology between ground and downhole and enhancing full life cycle service capability and adaptability to horizontal wells. Second, an integrated platform of zonal oil production and management should be built using a digital artificial lifting system. Third, integration of injection and production should be implemented through large-scale application of zonal oil production and zonal water injection to improve matching and adjustment level between the injection and production parameters, thus making the development adjustment from “lag control” to “real-time optimization” and improving the development effect.