Growing fruit trees on the slopes of rolling hills in South China is causing serious environmental problems because of heavy application of chemical fertilizers and soil erosion. Suitable sources of fertilizers and proper rates of applications are of key importance to both crop yields and environmental protection. In this article, the impact of four fertilizers, i.e., inorganic compound fertilizer, organic compound fertilizer, pig manure compost, and peanut cake (peanut oil pressing residue), on chestnut (Castanea mollissima Blume) growth on a slope in South China, and on the total N and total P concentrations in runoff waters have been investigated during two years of study, with an orthogonal experimental design. Results show that the organic compound fertilizer and peanut cake promote the heights of young chestnut trees when compared to the control. In addition, peanut cake increases single-fruit weights and organic compound fertilizer raises single-seed weights. All the fertilizers increase the concentrations of total N and total P in runoff waters, except for organic compound fertilizer, in the first year experiment. The observed mean concentrations of total N varied from 1.6 mg/L to 3.2 mg/L and P from 0.12 mg/L to 0.22 mg/L, which are increased with the amount of fertilizer applications, with no patt of direct proportion. On the basis of these experiment results, organic compound fertilizer at 2 kg/tree and peanut cake at 1 kg/tree are recommended to maximize chestnut growth and minimize water pollution.