The pipe-in-pipe (PIP) insulation pipeline configuration has been widely used in crude oil transportation. We analyze the selection principles of bulkhead and water stop in PIP insulation pipeline design. The structure configuration, installation method, mechanical property and economy are compared between the bulkhead and water stop. Their advantages and disadvantages are given. The selection principles for number and configuration of the bulkheads and water stops are described. Finally, the conclusion is verified in the LF13-2 pipeline replacement project.