Based on the requirements of the space range informatization, the paper discusses the necessity of digital range environment construction; analyzes the function and the main characteristics of digital space range environment, and suggests the constitution and system architecture of digital range environment. The key techniques of digital range environment creation applying visualization interactive simulation are also analyzed and discussed, which include the techniques of 3D-terrain generation, a fast algorithm for 3D-modeling based on complexity, the design of distributed simulation environment and the human computer interaction, etc.