Water cavitation peening (WCP) with aeration, namely, a new ventilation nozzle with aeration is adopted to improve the process capability of WCP by increasing the impact pressure induced by the bubble collapse on the surface of components. In this study, in order to investigate the process capability of the WCP with aeration a standard N-type almen strips of spring steel SAE 1070 was treated byWCP with various process conditions, and the arc height value and the residual stress in the superficial layers were measured by means of the Almen-scale and X-ray diffraction method, respectively. The optimal fluxes of aeration and the optimal standoff distances were achieved. The maximum of arc height value reach around 150μm. The depth of plastic layer observed from the results of residual stresses is up to 150μm. The results verify the existence of macro-plastic strain in WCP processing. The distributions of residual stress in near-surface under different peening intensity can provide a reference for engineers to decide the optimal process conditions of WCP processing.