A water retaining adhesive composition prepared by polymerizing and partially crosslinking 100 parts by weight of a 20 to 35 wt % solution of the acrylic polymer with 2 to 5 parts by weight of the amine group compound, amide group compound or amino group compound at a temperature of 20.degree. C. to 80.degree. C.; adjusting the pH value of the resultant partially crosslinked polymer to 6.0 to 7.0; and then sequentially compounding 10 to 40 parts by weight of modifiers and 2 to 5 parts by weight of water retaining agent in the partially crosslinked polymer. The modifier is a polyol, a polyalcohol or a poly(ether alcohol). The water retaining agent is 2-pyrrolidone-5-carboxylate.