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Deep neural network with rectified linear units (ReLU) is getting more and more popular recently. However, the derivatives of the function represented by a ReLU network are not continuous, which limit the usage of ReLU network to situations only when smoothness is not required. In this paper, we construct deep neural networks with rectified power units (RePU), which can give better approximations for smooth functions. Optimal algorithms are proposed to explicitly build neural networks with sparsely connected RePUs, which we call PowerNets, to represent polynomials with no approximation error. For general smooth functions, we first project the function to their polynomial approximations, then use the proposed algorithms to construct cor-responding PowerNets. Thus, the error of best polynomial approximation provides an upper bound of the best RePU network approximation error. For smooth functions in higher dimensional Sobolev spaces, we use fast spectral transforms for tensor-product grid and sparse grid discretization to get polynomial approximations. Our construc-tive algorithms show clearly a close connection between spectral methods and deep neural networks: PowerNets with n hidden layers can exactly represent polynomials up to degree sn, where s is the power of RePUs. The proposed PowerNets have po-tential applications in the situations where high-accuracy is desired or smoothness is required.