Recognizing key entities on texts of water environment accurately and rapidly can not only extract important information of water environment, but also improve the water quality. In recent years, Chinese named entity recognition becomes a research focus and many methods based on neural networks have been proven effective on entity recognition. This work proposes an improved hybrid prediction model named LBPSC for Chinese named entity recognition for the water environment data, which combines Lattice structure, Bi-directional long short-term memory (BiLSTM), Positional feature encoding, Sentence self-attention and conditional random field (CRF). LBPSC employs a three-phase end-to-end methodology for Chinese named entity recognition. It first adopts a BiLSTM with lattice structure to extract both character and word features from two directions, thereby avoiding word segmentation errors. It then innovatively combines a sentence self-attention mechanism with positional feature encoding to better handle sentences and add the position information to the trained features after BiLSTM. Then, a CRF layer is adopted to decode features and finally output the predicted tag of the data. Experimental results with real-life dataset demonstrate that LBPSC outperforms other deep learning algorithms in terms of prediction accuracy.