Water loss in paddy fields occurs through various pathways, and previous studies have primarily focused on water seepage in the field, often overlooking the potential for the field-bund area. In this study, 3 typical paddy fields in the plain river network area of southeastern China were selected to clarify the differences in the soil structure and hydraulic characteristics at different positions within the field–bund area: the field, inner bund, middle bund and outer bund. The interactions between basic soil properties and hydraulic characteristics were also evaluated. The results revealed that the outer bund presented the lowest soil porosity (6.92 %), followed by the field (7.52 %), middle bund (7.77 %), and inner bund (8.09 %). The soil pores in the field presented the smallest mean diameter and fractal dimension and the highest degree of anisotropy. The deep layer of the bund contained more macropores, and the soil pores exhibited greater spatial distribution heterogeneity. The bottom layer in the field and bund presented the lowest average Ks value of only 0.05 mm min−1, indicating the presence of a plow pan and a notable tendency for lateral seepage. Differences in the soil structure and hydraulic parameters between the field and bund created a driving force for lateral seepage and rendered the field–bund area a hotspot for water loss. For the analysis of the underlying water loss mechanism, the structural equation model represented 65 % of the total variance in the hydraulic parameters. The micropore characteristics had the greatest positive direct effect on the hydraulic parameters, with a standardized path coefficient of 0.39 (p < 0.001). The soil physical properties were not directly related to the hydraulic parameters but exerted an indirect effect through aggregate stability and micropore and macropore characteristics, with a total indirect standardized path coefficient of −0.41.