Prestressed concrete cylinder pipe (PCCP) is a type of composite pipes frequently used in water diversion projects. However, the existing methods for structural analysis of such pipes are complex; thus, very few standards are available for use in practical design. In this paper, the new straightforward technique for analyzing PCCP based on available standards is proposed in order to address the shortcomings of the existing standard and improve the convergence of subsequent calculations. The verification and comparison of case study given in the main standards showed that the proposed method is rational and useful. In addition, an advanced finite element model was utilized in practical design case that considered proper constitutive relationships, contact model, prestress of wires, and practical aspects of manufacturing, installation, and operation. Meantime, the results obtained by nonlinear FEA and the improved method are assessed and compared, which showed that nonlinear FEA based on corresponding intrinsic model and the improved method are recommendable to aid in practical design projects.