The utility model provides an insulation wall device and a water heater with the same. The insulation wall device comprises an insulation water passage and a water passage body. A groove extending spirally or extending in a reciprocating manner is formed on the water passage body, and the insulation water passage is composed of the groove. Therefore, lengths of a water inlet pipe and a water outlet pipe are increased greatly within a limited space, dimension of the water heater is reduced, and mounting space for the water heater is saved. The sum of lengths of water passages on two sides is far larger than the length of an insulation pipeline required in an insulation wall length formula, so that safety of the water heater is increased. An inlet water electric leakage detection pipe joint is added, and thereby the water heater is prevented from affecting users' safety in using water as tap water of the water inlet pipe is electrified.