The purpose of this research is to study the effect of different immersed depths on water wheel performance and flow characteristics using numerical simulations. The results indicate that the simulation methods are consistent with experiments with a maximum error less than 5%. Under the same rotational speeds, the efficiency is much higher and the fluctuation amplitude of the torque is much smaller as the immersed radius ratio increases, and until an immersed radius ratio of 82.76%, the wheel shows the best performance, achieving a maximum efficiency of 18.05% at a tip-speed ratio (TSR) of 0.1984. The average difference in water level increases as the immersed radius ratio increases until 82.76%. The water area is much wider and the water volume fraction shows more intense change at the inlet stage at a deep immersed depth. At an immersed radius ratio of 82.76%, some air intrudes into the water at the inlet stage, coupled with a dramatic change in the water volume fraction that would make the flow more complex. Furthermore, eddies are found to gradually generate in a single flow channel nearly at the same time, except for an immersed depth of 1.2 m. However, eddies generate in two flow channels and can develop initial vortexes earlier than other cases because of the elevation of the upstream water level at an immersed radius ratio of 82.76%.