The local atomic structure in hematite determines its intrinsic property for photoelectrochemical water splitting, but its precise design has rarely been clearly demonstrated. Here by inserting Ge atoms into a hematite lattice with abundant vacancies, the local environment around Fe can be significantly modulated with the formation of a distorted Ge−O−Fe microstructure, which serves as an active catalytic unit to lower the energy barrier for an efficient oxygen evolution reaction. As a result, the optimized Ge−Fe 2 O 3 (LV) photoanode exhibits an excellent photocurrent density of 4.04 mA/cm 2 at 1.23 V RHE , which is 5.0 times higher than that of pristine Fe 2 O 3 (0.80 mA/cm 2 ). It can further achieve 5.09 mA/cm 2 at 1.23 V RHE (stable over 100 h) by coupling with FeNiOOH. Furthermore, when connecting the Ge-based hematite with a commercial solar cell, the allsolar-driven system can realize an outstanding solar-to-hydrogen efficiency of up to 5.3%, standing for the top value for hematite-based systems. The Ge−O−Fe unit induced catalytic performance enhancement may shed light on the design of efficient catalysts for solar water splitting.